South Star Secures 100-Tonne Sale of Qualified Natural Flake Graphite to U.S. Client

South Star Battery Metals Corp. has announced the execution of a new binding commercial sales agreement. Under this latest Agreement, South Star will supply 100 tonnes (exceeding 220,000 pounds) of graphite concentrate from its flagship Santa Cruz mine, located in Bahia state, northeastern Brazil. This agreement marks a further advancement in South Star's commercial strategy and strengthens its position in the graphite market.

As announced by the company in July 2024, South Star is progressing with the commissioning of its Santa Cruz Phase 1 Graphite Mine in Brazil, marking a significant milestone as the first new graphite mine to commence operations in the Americas this century. The facility is on track to achieve steady-state production of approximately 1,000 tonnes per month, equating to an annual output of 12,000 tonnes. South Star anticipates fulfilling its initial customer orders during the fourth quarter of 2024.

For competitive reasons, the Client's identity and the commercial terms of the Agreement will remain undisclosed.

Richard Pearce, President and CEO of South Star, expressed enthusiasm about the company's ongoing efforts to develop long-term partnerships in the U.S. and execute their go-to-market sales strategy. He noted that the recent sales agreement was reached after the Santa Cruz graphite underwent rigorous and extensive testing and qualification programs. Pearce emphasized that the client specifically chose South Star’s graphite as a long-term feedstock, after other suppliers’ products failed to meet critical specifications.

This sale represents a significant milestone for South Star, highlighting the superior quality and performance of their Brazilian graphite. Pearce's comments underscore the company's successful positioning in the market and the value of their high-quality product in meeting demanding client requirements.

South Star's immediate go-to-market strategy focuses on producing high-quality graphite concentrates tailored for diverse industrial applications and sectors. Simultaneously, the Company is advancing technical product-development programs to enhance its midstream and downstream product offerings. These programs are aimed at developing value-added products, particularly battery-grade graphite. Key initiatives include specialty Coated Spherical Purified Graphite (CSPG), or Active Anode Material, designed for rechargeable lithium-ion (Li-ion) batteries, and conductivity-enhancement products suitable for all commercial primary and secondary battery chemistries. South Star plans to launch these advanced products in the market by Q4 2026, further strengthening its position in the battery materials sector.

South Star Battery Metals Corp. is a Canadian development-stage company focused on acquiring and advancing battery metals projects in the Americas. The company's flagship asset, the Santa Cruz Graphite Project in Brazil, is poised for near-term production. Leveraging Brazil's rich graphite mining heritage, South Star has successfully completed large-scale pilot testing on its high-grade, easily recoverable graphite mineralization, positioning the project as a cornerstone for the company's growth strategy.