South Star Battery Metals Corp. announced the execution of a binding sales agreement (the "Agreement") for the initial purchase of 100 tonnes of the Company's graphite concentrate from its Santa Cruz Graphite Mine in Brazil. The material will be shipped in five industry-standard intermodal ISO 20-foot shipping containers, each holding 20 one-tonne super sacks.

South Star anticipates that initial orders will be fulfilled and delivered during third quarter 2024. The Agreement was formally executed on May 3, 2024, with a prominent American industrial graphite customer (the "US Client"). The US Client has also expressed interest in negotiating regular purchases, pending positive test results for specific applications.

For competitive reasons, the US Client's identity and the Agreement's specific commercial details remain confidential. Additionally, South Star reported that another major US graphite company has evaluated, tested and successfully qualified Santa Cruz graphite concentrate on behalf of its leading customer, specifically qualifying Santa Cruz graphite for a green-energy application. South Star has made significant progress qualifying its Santa Cruz graphite concentrate with other major graphite end-users worldwide, who have undertaken extensive product testing as part of their due diligence process for offtake agreements.

The Company looks forward to updating the market on the progress of developments with other potential customers if and when details are finalized.