South Star Provides Updates on Changes to Management and Board and Provides Operational Update

Management Changes - Tiago Cunha has been appointed as Interim CEO, President, and Director, and he is the largest shareholder of the Company, agreeing to subscribe for C$2.085 million (US$1.5 million) of convertible notes [2] - Darren Prins has joined as Chief Financial Officer and Corporate Secretary, bringing over 20 years of experience in finance and accounting across various industries [3] - Rogerio Barcellos has been appointed General Manager for the Santa Cruz Graphite Project, with a plan to expand production to 10,000 tonnes per year of graphite concentrate [4] - Roger Mortimer has resigned as a Director to pursue other opportunities [5] Operational Update - The Company has faced challenges during the commissioning of the Santa Cruz graphite project, leading to a working capital deficit due to equipment selection issues and significant rainfall [6] - Operational performance has improved, with the first shipment of graphite completed, producing approximately 20 tonnes over eight months, and a better product mix achieved in subsequent shipments [7][10] - The Company has identified potential operating cost savings of approximately 40% through various measures during the ramp-up process [8] Strategic Initiatives - The Company is actively evaluating strategic partnerships to strengthen its cash position and enhance market presence [9] - With proceeds from recent private placements and a bridge loan facility, the Company anticipates sufficient funding to achieve the original design capacity of 5,000 tonnes per year at the Santa Cruz plant during 2026 [10] Project Overview - South Star Battery Metals Corp. is focused on developing battery-metals projects, with the Santa Cruz Graphite Project being the first in a series of projects aimed at production [11] - The BamaStar Project in Alabama is in the development pipeline, with strong economic results indicated by a pre-tax NPV of US$2.4 billion and an IRR of 35% [12]