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Stem 7 Capital Announces Results of AGM, Company Name Change & Welcomes New CEO

Management Changes Shareholder Meetings Corporate Actions

NEWS RELEASE

Stem 7 Capital Announces Results of AGM,

Company Name Change & Welcomes New CEO

July 28th, 2017 – Vancouver, B.C. - Stem 7 Capital Inc. (“Stem 7” or the “Company”) (TSXV:

STS.H) is pleased to provide shareholders with results from the Company’s Annual General

Meeting (“AGM”) held July 26th, 2017. As well, the Company announces its decision to change

the Company name to South Star Mining Corp. Finally, the Company wishes to welcome Mr.

Eric Allison as its new Chief Executive Officer (“CEO”).

AGM Results

Company shareholders voted in favour of all matters brought before the meeting and the election

of directors was approved by a majority vote of shareholders either in person or represented by

proxy as follows:

Election of Directors

Mr. Eric Allison

Mr. Allen Ambrose

Mr. Graydon Kowal

Mr. Dave McMillan

The Company also reports that the re-appointment of Manning Elliott LLP as auditor for the

Company and the Company's stock option plan were both approved by a majority vote of

shareholders either in person or represented by proxy at the meeting.

At the AGM’s conclusion, Company directors held a board meeting in which the decision was

made to change Stem 7’s name to South Star Mining Corp. (“South Star”). This new name was

decided upon to reflect the Company’s focus on mine opportunities in Brazil, South America, the

first being the Santa Cruz Graphite Project in the Bahia state of Brazil. A Letter of Intent to acquire

a 100% interest in the Santa Cruz project was announced on June 29, 2017. The name change is

subject to TSX Venture Exchange approval.

Company directors also accepted Dave McMillan’s resignation as CEO and appointed him

Chairman of the Board. The directors also appointed Eric Allison as the new CEO of the

Company. The Company wishes to thank Mr. McMillan for his many years of service as CEO.

As well, the Company appointed Mr. McMillan Chairman of the Audit Committee. He will be

accompanied on the committee by directors Allen Ambrose and Graydon Kowal, both independent

directors.

About Stem 7 Capital Corp. (South Star Mining Corp.)

The Company is focused on the acquisition and development of near -term mine production

projects in Brazil to maximize shareholder value. The Company recently announced a Letter of

Intent to acquire a 100% interest the Santa Cruz Graphite Project in the Bahia State, Brazil. The

Santa Cruz project consists of 13 approved exploration licenses covering approximately 13,000

hectares located in a producing graphite district with a history of over 70 years of continuous

graphite production. An independent NI43-101 Preliminary Economic Assessment Technical

Report (“PEA”) on the Santa Cruz Graphite Project is expected to arrive shortly. The Project will

be based on approximately 7000 meters of drilling and pilot plant test work on over 30 tons of

material. The PEA will also include an economic analysis, a resource estimate with a description

of the project history, geology, mineralization, sampling procedures, and laboratory Quality

Assurance/Quality Control procedures.

A new corporate website is in the final stages of development and the Company looks forward to

providing shareholders access to this informative site following receipt of the PEA.

On behalf of the Board,

Eric Allison

Chief Executive Officer

Ph: +1 (203) 918-3098

Email: [email protected]

For additional information, please contact:

Kris Kottmeier

Ph: +1 (604) 506-2502

Email: [email protected]

Neither 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 release.