South Star Battery Metals Announces Approval of Final Exploration Reports of Santa Cruz Mine by Brazilian Mining Authority & 2022 Outlook

VANCOUVER, British Columbia, Feb. 09, 2022 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has received approval from the Brazilian Mining Authority ("ANM") on February 8^th, 2022 for the final exploration reports for 7 of the 13 claims of the Santa Cruz Graphite Mine in Brazil. The other 6 areas are in final analysis by the ANM, and the Company expects they should be published shortly.

A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/00cf8cf7-4e1a-49a1-b1eb-ec763a3e5f4d

"The seven areas that were approved by the ANM include all the main areas we plan on using for Phase 1 & 2 operations and is a huge step forward towards getting our definitive mining license for all future Phases of Santa Cruz," commented Richard Pearce, President and CEO of South Star. "We are fully licensed and permitted for Phase 1 operations (5,000 tpy). We are in the process of preparing the definitive environmental licensing documentation for Phase 2 (25,000 tpy) and Phase 3 (50,000 tpy). The next step in the process for the definitive mining license is submittal of the Preliminary Economic Assessment ("PAE") and in parallel approval of the definitive mining license. The PAE documents for the main areas are in final review by our team, and we anticipate submitting to the ANM shortly. Our goals are to have Phases 2 and 3 fully permitted around the time our Phase 1 plant is commissioning in Q1 of 2023. This is another step forward for the mine and real, long-term value creation for shareholders with a large land package and scalable resource in one of the premier graphite producing regions in the world. We have a substantial drilling program planned for 2022 and 2023 with the goal of significantly increasing our reserves and mine life. I'd like to thank our team and the analysts at the ANM for all their hard work and dedication."  

2022 OUTLOOK & CATALYST EVENTS

• Santa Cruz Phase 1 (5,000 tpy concentrates) is fully permitted and construction ready with commercial production planned for March or April of 2023;
• The on-going testing programs have shown that our purified graphite products made from the fines portion of our production meet or exceed a broad range of applications, including lithium-ion battery production. The Company is also exploring many markets that have shorter qualification periods than EV sector and excellent margins for our final products as well;
• The Company is in advanced negotiations and continues to push towards finalizing the project financing of Phase 1 operations. The Company looks forward to providing additional detail at the appropriate time in the near future;
• Phase 1 start of construction;
• Phase 1 commissioning & start of commercial production;
• Exploration and resource/reserves expansion at Santa Cruz;
• Exploration and maiden resource estimate at Alabama;
• Value-add product optimizations;
• Value-add process trade off study with conceptual level CAPEX/OPEX;
• Environmental permitting and mining license for Phase 2 (25,000 tpy concentrate) and Phase 3 (50,000 tpy concentrate); &
• Commercial off-take agreements.
  

2021 END OF YEAR SUMMARY

The Company is pleased to announce that a 2021 end of year summary is available on the website. Highlights include:

• 560% share price return in 2021;
• Excellent share liquidity with December 2021 daily average of 825,000 shares traded and a daily trading value of approximately USD171,000;
• US buying has increased from basically 0 in January 2021 to account for approximately 20-25% of the daily traded value by December;
• Market capitalization has grown 1467% from CAD$2.15M at the close of 2020 to CAD$33.7M at the close of 2021;
• Current assets at end of 2021 will be around CAD3.5M including CAD3.4M in cash; &
• The earn-in agreement for the Alabama Project was finalized and will potentially provide the next project in the pipeline in a key jurisdiction for diversifying political risks and supply chain requirements.

2021 EOY Summary Link

ABOUT SOUTH STAR BATTERY METALS CORP

South Star Battery Metals Corp. is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star's Santa Cruz Graphite Project, located in Southern Bahia, Brazil is the first of a series of industrial and battery metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (>30t) has been completed. The results of the testing show that approximately 65% of Cg concentrate is +80 mesh with good recoveries and 95%-99% Cg. With excellent infrastructure and logistics, South Star is carrying its development plan towards Phase 1 production projected in Q4 2022, pending financing. South Star trades on the TSX Venture Exchange under the symbol STS, and on the OTCQB under the symbol STSBF.

South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG principles based on transparency, stakeholder engagement, ongoing education and stewardship. To learn more, please visit the Company website at http://www.southstarbatterymetals.com.

This news release has been reviewed and approved by Richard Pearce, P.E., a "Qualified Person" under National Instrument 43-101 and President and CEO of South Star Battery Metals.

On behalf of the Board,

Mr. Richard Pearce
Chief Executive Officer

For additional information, please contact:

South Star Investor Relations (Canada IR)

Email: [email protected]

RBMG ? RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: [email protected]

Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
YouTube: South Star Battery Metals - YouTube

CAUTIONARY STATEMENT

Neither the 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 press release.

This news release and the Updated Technical Report contain references to inferred resources. The Report is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

FORWARD-LOOKING INFORMATION

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements".

Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.