Core Viewpoint - South Star Battery Metals Corp has signed a non-binding indicative term sheet for a US$4,000,000 loan facility with Sprott Streaming to support the development of the Phase 1 Santa Cruz Graphite Mine in Brazil [1][6]. Loan Details - The loan has a maturity of 3 years, with the initial tranche of US$200,000 contingent on US$2,000,000 equity or subordinated debt financing [1][4]. - The loan proceeds will be exclusively used for equipment adjustments, working capital, and process optimization at the Santa Cruz Graphite Mine, aiming for a production ramp-up from 450 tonnes per month to 1,000 tonnes per month [2][6]. - The loan will have an interest rate of 12% per annum for the first 24 months, increasing to 18% for the final 12 months, with a 12-month grace period [4]. Management Commentary - The CEO of South Star expressed satisfaction with the financing partnership with Sprott Streaming, highlighting the importance of this facility for advancing the Santa Cruz Graphite Mine and enhancing the company's position as a critical materials supplier for the energy transition [3][6]. Financial and Operational Strategy - A detailed development plan has been prepared to improve operational performance and ensure consistent product quality at Santa Cruz [2]. - The loan will enhance operational robustness and provide financial flexibility for executing the development plan [2]. Leadership Changes - Mr. Darren Prins has been appointed as the new Chief Financial Officer, bringing over 20 years of experience in finance and accounting [5][7]. - The CEO welcomed Mr. Prins to the team, emphasizing the value of his extensive experience in senior finance roles [8]. Company Overview - South Star is focused on developing battery-metals projects in the Americas, with the Santa Cruz Graphite Project being the first of its kind in the region since 1996 [9]. - The company is also advancing the BamaStar Project in Alabama, which has shown strong economic results in preliminary assessments [10]. ESG Commitment - South Star is committed to high standards of ESG principles, emphasizing transparency, stakeholder engagement, and stewardship in its operations [11].

- NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES - VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it that it has successfully completed an initial tranche of its non-brokered private placement (the “Private Placement”) of units (the “Units”) for gross proceeds of US$302,610 (CA$415,263.45). Proceeds from the Private Placement will be used for d ...

Core Viewpoint - South Star Battery Metals Corp. is initiating a non-brokered private placement to raise up to US$2 million, with each unit priced at US$0.22, consisting of one common share and one warrant for a five-year exercise period [1][2]. Group 1: Private Placement Details - The private placement aims to raise gross proceeds of up to US$2 million (C$2,744,600) [1]. - Each unit will include one common share and one warrant, with the warrant allowing the purchase of one common share at an exercise price of US$0.22 (C$0.3019) [1]. - The closing of the private placement is contingent upon customary conditions, including TSX Venture Exchange approval [2]. - Proceeds will be allocated for exploration, development, corporate general and administrative expenses, and general working capital [2]. - The company may pay finders' fees to eligible finders and has the option to increase the placement size by up to 15% [3]. Group 2: Insider Participation and Warrant Terms - Insiders may participate in the private placement, with exemptions from formal valuation and minority shareholder approval due to the transaction's market capitalization not exceeding 25% [4]. - The warrants will include an acceleration clause, allowing the company to expire unexercised warrants if the trading price exceeds C$1.25 for ten consecutive trading days [5]. Group 3: Company Overview and Projects - South Star Battery Metals Corp. focuses on developing battery metals projects in the Americas, with the Santa Cruz Graphite Project in Brazil being the first to enter production [7]. - The Santa Cruz project has shown promising results, with over 65% of graphite concentrate being +80 mesh and 95%-99% graphitic carbon [7]. - The BamaStar Project in Alabama is strategically located in a developing electric vehicle and aerospace hub, with a pre-tax NPV of US$2.4 billion and an IRR of 35% [8]. - The company has received a US$3.2 million grant from the US Department of Defense to advance the BamaStar project feasibility study [9].