South Star Achieves Graphite Purchase Order Milestone
Rhea-AI Summary
South Star Battery Metals (OTCQB: STSBF) has completed the qualification process for graphite concentrate from its Santa Cruz mine with a significant customer and received a purchase order covering 36 tonnes of graphite. This follows three qualification shipments sent on June 1, July 14 and July 28, 2026 for laboratory analysis of flake and fines material.
The first bulk shipment under this purchase order is scheduled for dispatch this week, with operations finalizing logistics. According to South Star, the sale volume is not material to its current financial position, but is viewed as an important commercial milestone and may lead to additional graphite sales as discussions with the buyer continue.
Positive
- 36-tonne graphite purchase order from qualified Santa Cruz customer
- Three prior qualification shipments successfully met buyer quality specifications
- First bulk shipment scheduled for dispatch within the current week
- Buyer interest in additional purchases signals potential repeat business
Negative
- Company states 36-tonne sale is not financially material at this stage
- Laboratory analysis and price negotiations took longer than anticipated
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, British Columbia, Aug. 07, 2026 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF) is pleased to announce that it has successfully completed the qualification process for the graphite concentrate produced at the Santa Cruz mine with a significant graphite customer and has received a purchase order from this customer for 36 tonnes of graphite concentrate. This marks a significant achievement for South Star on the path to revenues.
Santa Cruz Project—Shipments
A total of three shipments of graphite from the Santa Cruz mine have been completed to date. These shipments, made on June 1, July 14 and July 28, 2026, respectively, and consisted of representative samples of Santa Cruz production that was shipped to the buyer for laboratory analysis to confirm the graphite conformed to the required quality specifications. Both flake and fines samples were included in the testing program. As a result of the successful evaluation of these samples, South Star has received a purchase order from the buyer. This first bulk shipment is scheduled to be dispatched this week, with the operations team currently finalizing the shipment process. Additionally, the buyer is interested in additional purchases of graphite from the Santa Cruz mine, reflecting continued confidence in the quality of the Company’s product.
The purchase order covered totaled 36 tonnes of graphite. While the sale of this volume of graphite is not material to the Company's financial position, it marks an important milestone for the Project. This purchaser is currently testing sample fines as well. Discussions with the buyer are ongoing, and the Company anticipates potential opportunities to sell additional graphite production to this customer in the future.
Rogerio Barcellos, COO, stated, “We are very pleased to have achieved this significant milestone in the development of the Santa Cruz graphite project. While the laboratory analysis and price negotiation process took longer than anticipated, we see a clear path for significant potential revenue with this important customer. With the purchase order received and the graphite bags scheduled for shipment, we look forward to additional shipments of Santa Cruz graphite in the near future. This represents a significant accomplishment, particularly given the short period that the plant has been back in production and the significant progress we continue to make in fine-tuning the Santa Cruz process plant. We are encouraged by this progress and look forward to building on this momentum with future shipments.”
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.
