Mr. Marc Leduc reports

SOUTH STAR ANNOUNCES UPSIZE OF NON-BROKERED PRIVATE PLACEMENT

Due to significant market demand, South Star Battery Metals Corp. has increased the size of its previously announced non-brokered private placement of units from $6,255,000 to up to $6,672,000 ($4.8-million (U.S.)).

The upsized offering will now consist of up to 44.48 million units at a price of 15 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional share at a price of 20 cents per share for a period of five years from the applicable closing date, subject to acceleration. The expiry date of the warrants may be accelerated, at the option of the company, if, at any time after four months following the closing date, the closing price of the company's common shares on the TSX Venture Exchange is at or above 40 cents for 10 consecutive trading days, provided that the company gives 30 days of prior notice to the holders by news release.

All other terms of the offering remain unchanged from those set out in the company's news releases dated Sept. 30, 2025, Oct. 10, 2025, and Oct. 31, 2025.

The net proceeds from the upsized offering will be used for exploration and development activities, general and administrative expenses, and working capital. The offering remains subject to the final approval of the exchange. All securities issued under the offering will be subject to a statutory hold period of four months and one day from the applicable date of issuance in accordance with applicable securities laws.

To date, the company has closed two tranches of the offering for aggregate gross proceeds of approximately $3.26-million. The company anticipates closing one or more additional tranches of the offering in the coming weeks, the closing of which remain subject to customary conditions, including the receipt of all necessary corporate and regulatory approvals, including approval of the exchange. The company may pay finders' fees in connection with any additional tranches of the offering, within the limits permitted under the policies of the exchange, which may consist of cash or finder warrants or shares.

About South Star Battery Metals Corp.

South Star 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 (greater than 30 tonnes) has been completed. The results of the testing show that approximately 65 per cent of graphite concentrate is plus 80 mesh with good recoveries and 95 per cent to 99 per cent graphitic carbon (Cg). With excellent infrastructure and logistics, South Star phase 1 is ramping up commercial production, with first sales shipped in May, 2025. Santa Cruz is the first new graphite production in the Americas since 1996.

South Star's second project in the development pipeline is strategically located in the centre of a developing electric vehicle, aerospace and defence hub in Alabama, United States. The BamaStar project includes a historic mine active during the First and Second World Wars. The vertically integrated production facilities include a mine and industrial concentrator in Coosa county, Alabama, and a downstream value-add plant in Mobile, Ala., which will be upgrading natural-flake graphite concentrates from both Santa Cruz and BamaStar mines. A National Instrument 43-101 preliminary economic assessment demonstrates strong economic results with a pretax net present value (discounted at 8 per cent) of $2.4-billion (U.S.) and an internal rate of return (IRR) of 35 per cent as well as an after-tax NPV (discounted at 8 per cent) of $1.6-billion (U.S.) with an IRR of 27 per cent. South Star has also received $3.2-million (U.S.) grant commitment from the U.S. Department of Defense Title III program to advance a feasibility study on the BamaStar project. South Star trades on the TSX-V 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 (environmental, social and governance) principles, based on transparency, stakeholder engagement, continuing education and stewardship.

This news release has been reviewed and approved for South Star by Marc Leduc, PEng, a qualified person under National Instrument 43-101 and chairman of South Star Battery Metals.

We seek Safe Harbor.