South Star Battery Metals Announces Selection by BNDES and FINEP for Strategic Minerals Funding Program, Maiden Shipment of Flake Graphite from the Santa Cruz Mine and Operational Update

Article content

Highlights:

Article content

Article content

Article content

Article content

VANCOUVER, British Columbia, June 16, 2025 (GLOBE NEWSWIRE) — South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it was selected by the R$5B (US$895M) Transformation of Strategic Minerals initiative sponsored by the BNDES and FINEP. The initiative targets increased production and transformation of minerals crucial for energy transition and decarbonization, focusing on developing supply chains for graphite, lithium, rare earth elements, and other strategic minerals in Brazil. The initiative is designed to accelerate the production and transformation of critical minerals essential for the global energy transition and decarbonization, with a strategic focus on building supply chains for priority resources.

Article content

Article content

South Star presented a work program and conceptual business plan for Santa Cruz Phase 2 and 3 expansions as well as the downstream transformation of graphite in Brazil for industrial and energy transition sectors. The Company will now submit a comprehensive business plan detailing market analysis, management, milestones, budgets, marketing strategy, operations plan, partnerships and socio-environmental impacts for increasing production with a phased, modular approach. South Star will work in partnership with BNDES and FINEP to assess the most appropriate potential financial structures for future funding, which could include credit facilities, equity participation, and grants to invest in productive capacity, research, development, and innovation (“RD&I”).

Article content

Article content

In addition, the Company is pleased to announce that the maiden shipment of graphite concentrates from Santa Cruz left the mine on June 5^th, 2025 and is enroute to North America. This significant milestone marks the transition of South Star into commercial production and underscores its commitment to establishing a reliable, scalable global supply chain with integrated graphite production in the Americas. Santa Cruz Phase 1 is the first new graphite production in the Americas since 1996 and is fully licensed and permitted through Phases 2 and 3, enabling total production capacity of up to 50,000 tonnes per year (“tpy”) of high-quality Brazilian graphite concentrates. The next orders are being produced and are planned to ship shortly.

Article content

Richard Pearce, CEO of South Star, commented, “We are honored to be selected for this landmark strategic minerals initiative in Brazil. We are also proud of delivering the first new graphite production in the Americas since 1996 at a time when global supply chains have few options and political tensions are increasing. As a leading global producer of critical minerals, Brazil plays a pivotal role in supplying the metals essential for defense, industrial, energy transition, and stationary storage applications. Among Western jurisdictions, Brazil holds the greatest potential to rapidly scale production and drive innovation across the entire value chain—from raw materials to advanced manufacturing—supported by a skilled workforce, robust industrial base, clean energy and excellent infrastructure. Our selection is a strong endorsement of graphite’s growing strategic importance, as well as of our long-term vision and commitment to supporting Brazil, our local communities, and our global clients. This support could be transformational for the expansion of our Santa Cruz operations and a key step toward unlocking long-term value for all stakeholders.”