– NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH US NEWS SERVICES –
VANCOUVER, British Columbia, November 7, 2025 (GLOBE NEWSWIRE) — South Star Battery Metals Corp. (“Southern Star” or “Company“) (TSXV: STS) (OTCQB: STSBF) is pleased to announce that due to significant market demand, the Company has increased the size of its previously announced non-brokered private placement (“Offer“) units (“Units“) from C$6,255,000 to C$6,672,000 (US$4,800,000).
The increased supply will now consist of 44,480,000 units at a price of C$0.15 per unit. Each Unit consists of one ordinary share (“Share“) and one warrant to purchase a common share (“Order“). Each warrant entitles the holder to purchase one additional share at a price of C$0.20 per share for a period of five (5) years from the applicable closing date, subject to acceleration. The expiration date of the warrants may be accelerated, at the Company's option, if at any time after the expiration of four (4) months after the closing date the closing price of the Company's common shares on the TSX Venture Exchange (“Exchange» is or exceeds C$0.40 for ten (10) consecutive trading days, provided that the Company provides thirty (30) days' prior notice to holders by press release.
All other terms of the Offering remain unchanged from the terms and conditions set forth in the Company's press releases dated September 30, 2025, October 10, 2025 and October 31, 2025.
The net proceeds from the increased offering will be used for exploration and development activities, general and administrative expenses and working capital. The Offer remains subject to the final approval of the Exchange. All securities issued in the Offering will be subject to a statutory hold period of four months and one day from the applicable issue date in accordance with applicable securities laws.
To date, the Company has closed two tranches of the Offering for aggregate gross proceeds of approximately C$3.26 million. The Company expects to close one or more additional tranches of the Offering in the coming weeks, the closing of which will be subject to customary conditions, including the receipt of all necessary corporate and regulatory approvals, including Exchange approval. The Company may pay finder's commissions in connection with any additional tranches of the Offering to the extent permitted by Exchange policy, which may consist of cash, finder warrants or Shares.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (“US Securities Law“) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act and applicable state securities laws or an exemption from such registration.
ABOUT SOUTH STAR BATTERY METALS CORP.
South Star is a Canadian battery metals project developer focused on selectively acquiring and developing short-term manufacturing projects in the Americas. South Star's Santa Cruz graphite project, located in Southern Bahia, Brazil, is the first in a series of industrial metals and battery projects to enter production. Brazil is the second largest graphite producing region in the world, with continuous mining going on for over 80 years. Santa Cruz has surface mineralization of unconsolidated materials and successful large-scale pilot plant testing (>30 tonnes) has been completed. Test results show approximately 65% graphite concentrate is +80 mesh with good yield and 95%-99% graphitic carbon (Cg). With excellent infrastructure and logistics, South Star Phase 1 is ramping up commercial production with first sales commencing in May 2025. Santa Cruz is the first new graphite production facility in America since 1996.
The second South Star project in development is strategically located in the center of the emerging electric vehicle, aerospace and defense manufacturing hub in Alabama, USA. The BamaStar project includes a historic mine that operated during World War I and World War II. The vertically integrated production facilities include a mine and industrial processing plant in Coosa County, Alabama, and a processing and processing plant in Mobile, Alabama, which will process natural flake graphite concentrates from the Santa Cruz and BamaStar mines. The preliminary economic assessment of NI 43-101 shows strong economic results, with a pre-tax net present value (“NPV8%)” of $2.4 billion and an internal rate of return (“IRR”) of 35%, and an after-tax NPV8% of $1.6 billion with an IRR of 27%. South Star also received a $3.2 million grant from the U.S. Department of Defense Title III program to develop a feasibility study for the BamaStar project. South Star shares trade 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 delivery plan and safe operations that meet the highest standards of ESG principles based on transparency, stakeholder engagement, ongoing learning and governance. To learn more, visit the company's website at: http://www.southstarbatterymetals.com.
This press release has been reviewed and approved for South Star by Mark Leduc, P.E., a “qualified person” under National Instrument 43-101 and Chairman of South Star Battery Metals Corp.
On behalf of the South Star Board of Directors,
MR. MARK LEDUK,
CHAIRMAN OF THE BOARD OF DIRECTORS
For more information, contact: South Star Investor Relations.
South Star Investor Relations
WARNING
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
FORWARD-LOOKING INFORMATION
This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements relate to information that is based on management's assumptions, projections of future results and estimates of amounts that have not yet been determined. Any statements that express forecasts, expectations, beliefs, plans, projections, goals, assumptions or future events or results are not statements of historical fact and may be “forward-looking statements.”
Forward-looking statements in this press release include, but are not limited to, statements regarding the completion of subsequent tranches of the Offering, the expected gross proceeds and use of proceeds therefrom, the timing and receipt of regulatory approvals and the Company's overall strategy, plans and future expectations.
Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements, including, but not limited to: risks associated with the inability to obtain adequate financing on a timely basis and on acceptable terms; risks associated with the outcome of litigation; political and regulatory risks associated with mining and exploration; risks associated with maintaining stock exchange quotes; risks associated with environmental regulation and liability; the potential for delays in exploration or development or completion of feasibility studies; uncertainty of profitability; risks and uncertainties associated with the interpretation of drilling results, the geology, grade and continuity of mineral deposits; risks associated with the inherent uncertainty of production and cost estimates and the possibility of unexpected costs and expenses; the results of preliminary and feasibility studies and the possibility that future exploration, development or production results will not meet the Company's expectations; risks associated with fluctuations in commodity prices; risks associated with obtaining shareholder approval for the Notes Offering; and other risks and uncertainties associated with the Company's prospects, properties and business that are described in detail elsewhere in the Company's disclosures. Additional information regarding these and other risk factors can be found in the Company's continuous disclosure documents available on its profile on SEDAR+ at: www.sedarplus.ca.
If one or more of these risks and uncertainties materialize or if underlying assumptions prove incorrect, actual results could differ materially from those described in the forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof, and the Company undertakes no obligation to update or revise them to reflect new events or circumstances. Actual events or results may differ materially from the Company's expectations or forecasts.
