South Star Announces Santa Cruz Operational Update; First Shipment of Graphite Shipped

VANCOUVER, British Columbia, July 22, 2026 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF) is pleased to announce June operational results from the Santa Cruz plant in Brazil.

Santa Cruz Project—Operational Highlights
This update outlines the operational progress of the Santa Cruz mine. Key takeaways include:

Throughput Improvements

• ROM feed increased substantially once again:
  • April 2026: 1,337.5 tonnes
  • May 2026: 3,798.5 tonnes
  • June 2026: 4,920.1 tonnes
    
    

From May to June, ROM feed to the plant increased by approximately 30%, while graphite concentrate production doubled, demonstrating a significant improvement in overall process efficiency. These results reflect the positive impact of ongoing operational optimization initiatives, enhanced process stability, and improved plant performance as the operation continues to ramp up.

• Reagent consumption (the highest-cost production input) remained well controlled despite the higher production rate, which indicates that the process is becoming increasingly efficient as throughput continues to ramp up.
• Plant utilization improved significantly, demonstrating greater operational continuity and more effective utilization of the installed capacity.
• Overall, the key performance indicators confirm that the operation is progressing towards anticipated targets, with consistent improvements in plant productivity, metallurgical recovery, concentrate quality, and moisture control.
• The Santa Cruz operation has successfully established a stable operating regime for the production of 95% carbon grade flake graphite. All flake concentrates currently produced meets commercial specifications.
• The plant achieved a significant improvement in both flake and fines concentrate grades. During June, 100% of the graphite concentrate produced met commercial specifications, representing an important operational milestone and demonstrating the increasing stability and effectiveness of the processing plant.
  
  

Over 4,000 process and quality data points are collected on a regular basis at the Santa Cruz plant, providing a solid foundation for process optimization, rapid identification of deviations, and continuous improvement initiatives.

Tiago Cunha, Interim CEO, states, “Our COO, Rogerio Barcellos, continues to deliver positive operational results. The plant is being monitored regularly and consistently in order to attain a production capacity of 5,000 tpa of graphite concentrate. The early indications highlight that the team is steadily learning how to adjust the plant through regular monitorization of data points which is demonstrating positive results thus far.”

Qualified Person Statement

The technical and scientific information in this news release has been reviewed and approved by Marc Leduc, P.Eng, Director, a qualified person as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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 is anticipated to be put into production. Brazil is the second largest graphite producing region in the world with more than 80 years of continuous mining. With excellent infrastructure and logistics, Santa Cruz is slated to be the newest graphite producer in the Americas. 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 southstarbatterymetals.com.

For additional information:
South Star Investor Relations
Email : invest@southstarbatterymetals.com
Phone : +1 (303) 519-5149

This press release 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 in this press release include, but are not limited to, statements regarding production and scaling of operations at Santa Cruz, and the Company’s plans and expectations.

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.

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