STS.V · 2017-10-02 12:00:00

Stem 7 Capital Welcomes New Chief Financial Officer

Management Changes

NEWS RELEASE

October 2nd, 2017 – Vancouver, B.C. - Stem 7 Capital Inc. (“Stem 7” or the “Company”)

(TSXV: STS.H) is pleased to welcome Mr. Justin Blanchet, CA, CPA as the new Chief Financial

Officer (“CFO”) with the Company.

Mr. Blanchet has acquired considerable experience in the areas of financial reporting, regulatory

compliance, treasury, and audit for both Canadian and U.S. publicly listed companies. He has

international experience working on projects throughout the world and is well-versed in the

requirements of complex regulatory environments and the requirements of International Financial

Reporting Standards. Mr. Blanchet is a Canadian Chartered Professional Accountant and a U.S.

Certified Public Accountant (Washington).

Mr. Blanchet’s tenure as CFO with the Company commenced October 1st, 2017

About Stem 7 Capital Corp. (soon to be named 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 in 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 has been filed with the TSX Venture

Exchange. 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.

On behalf of the Board,

Eric Allison

Chief Executive Officer

Ph: +1 (203) 918-3098

For additional information, please contact:

Kris Kottmeier

Ph: +1 (604) 506-2502

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.