santa cruz graphite project

July 2019 Corporate Presentation

Santa Cruz

Road To Production in 2022

“Fundamental Value in a Premier Battery Metals Jurisdiction”

Corporate Presentation: September 2021

Graphite Project

TSXV: STS | OTCQB: STSBF

Cautionary and Forward-Looking Statements

www.southstarbatterymetals.com 2TSXV: STS | OTCQB: STSBF

This presentation includes certain statements that constitute “forward-looking statements”, and“forward-looking information” within the meaning of applicable securities laws (“forward-looking statements” and “forward-looking information” are collectively referred to as “forward-looking statements”, unless otherwise stated). These statements appear in a number of placesin this presentation and include statements regarding our intent, or the beliefs or currentexpectations of our officers and directors. Such forward-looking statements involve known andunknown risks and uncertainties that may cause our actual results, performance orachievements to be materially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements. When used in this presentation wordssuch as “believe”, “anticipate”, “estimate”, “project”, “intend”, “expect”, “may”, “will”, “plan”,“should”, “would”, “contemplate”, “possible”, “attempts”, “seeks” and similar expressions areintended to identify these forward-looking statements. Forward-looking statements may relateto the Company’s future outlook and anticipated events or results and may include statementsregarding the Company’s future financial position, business strategy, budgets, litigation,projected costs, financial results, taxes, plans and objectives. We have based these forward-looking statements largely on our current expectations and projections about future events andfinancial trends affecting the financial condition of our business. These forward-lookingstatements were derived utilizing numerous assumptions regarding expected growth, results ofoperations, performance and business prospects and opportunities that could cause our actualresults to differ materially from those in the forward looking statements. While the Companyconsiders these assumptions to be reasonable, based on information currently available, theymay prove to be incorrect. Accordingly, you are cautioned not to put undue reliance on theseforward-looking statements. Forward-looking statements should not be read as a guarantee offuture performance or results.

To the extent any forward-looking statements constitute future-oriented financial informationor financial outlooks, such statements are being provided to describe the current anticipatedpotential of the Company and readers are cautioned that these statements may not beappropriate for any other purpose, including investment decisions. Forward-looking statementsare based on information available at the time those statements are made and/ormanagement's good faith belief as of that time with respect to future events, and are subject toknown and unknown risks and uncertainties, including those risks and uncertainties outlinedunder “Risk Factors” in our most recent AIF, that could cause actual performance or results todiffer materially from those expressed in or suggested by the forward-looking statements. To

the extent any forward-looking statements constitute future-oriented financial information orfinancial outlook, such statements are being provided to describe the current anticipatedpotential of the Company and readers are cautioned that these statements may not beappropriate for any other purpose, including investment decisions. Forward-looking statementsspeak only as of the date those statements are made. Except as required by applicable law, weassume no obligation to update or to publicly announce the results of any change to anyforward-looking statement contained or incorporated by reference herein to reflect actualresults, future events or developments, changes in assumptions or changes in other factorsaffecting the forward- looking statements, except as required by law. If we update any one ormore forward-looking statements, no inference should be drawn that we will make additionalupdates with respect to those or other forward-looking statements. You should not place undueimportance on forward-looking statements and should not rely upon these statements as of anyother date. All forward-looking statements contained in this presentation are expressly qualifiedin their entirety by this cautionary statement.

Confidential Material - This document contains confidential and private material that shall notbe re-transmitted to other parties that not its original addressee. All information containedherein are for informative purposes and shall not be regarded as an offer, solicitation for anyfinancial transaction nor a valuation or commitment of financial / technical performance.

Cautionary Note: This PEA is considered by STS to meet the requirements of a PreliminaryEconomic Assessment as defined by Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. The economic analysis containedin the technical report is based, in part, on Inferred Resources (as defined in NI 43-101) and ispreliminary in nature. Mineral Resources that are not Mineral Reserves do not havedemonstrated economic viability. There is no guarantee that all or any part of the MineralResource will be converted into a Mineral Reserve. Inferred Resources are considered toogeologically speculative to have mining and economic considerations applied to them and to becategorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or drillingwill be required to convert Inferred Mineral Resources to Measured or Indicated MineralResources. Mineral Resources that are not Mineral Reserves do not have demonstratedeconomic viability. There is no certainty that the reserve's development, production andeconomic forecasts on which the PEA is based will be realized.

Key Company Highlights

• Management team with proven track record of taking projects into production & operations in Brazil

• Plant construction planned for H2 2021

• Current market capitalization only 2.5% of project NPV (pre-financing)

• Strong graphite demand in Brazil: high-tech battery market as well as steel-making, foundries, lubricants, electronics and automotive industries

• Graphite uses include: lithium-ion batteries, graphene, fire resistant insulation and coatings and construction materials

• Two-phased approach to minimize risks and intelligently allocate capital for shareholder value:✓ Phase 1 – 5,000tpy Concentrate Pilot Plant✓ Phase 2 – 25,000tpy Concentrate Plant

• Low CAPEX (<US$35M) in two Phases:• Phase 1 – Pilot Plant (US$8M)• Phase 2 – Large Plant (US$27M)


South Star Mining Highlights

Industrial graphite

US$500 to US$2,500 per tonne

Battery grade graphite

US$3,400 to US$4,400 per tonne

Santa Cruz project situated in second largest flake graphite producing district in the world


Santa Cruz Graphite Project Advantages

Additional tests yielded high purity, battery

quality products

Drill-ready targets

NI 43-101 PFS & updated Resource Estimate completed

Open-pit deposit within

13,000 ha property

Large Geologic Upside

95% of project unexplored Entire land package mineralized according to Brazilian Mining Authority

Open at depth & along strike

LARGE &EXTRA-LARGE graphite flakes

10-15

Completed bench scale & 30 tonne pilot plant testing programs

Produced quality concentrates and

marketable flake sizes

95-99% Cg

Excellent large flake ore

Approximately

65% of ore > 80 Mesh

GEOLOGY, EXPLORATION & RESOURCES

METALLURGY & PROCESS

KEY PROJECT HIGHLIGHTS

“The larger the flake size, the higher the price!”

Low impurities & Highly crystalline structure

• 14% of global production in 2018

STS Share Information


Cap Table (000s)*

Stock Information as of August 30, 2021

“Graphite demand just for battery storage is expected to grow 494% by 2050 to a total demand of 4.6Mt. That doesn’t even consider growth coming from industrial or other high tech uses like graphene or

expandable. It is one of the principal critical metals that will require the most investment. ”

Total Outstanding 77,419

Warrants @ $0.06 5,600 (Exp 05/2024)

Warrants @ $0.15 25,015 (Exp 02/2024)

Options @ $0.15 90 (Exp 06/2024)

Options @ $0.30 900 (Exp 05/2022)

Options @ $0.45 600 (Exp 07/2023)

Options @ 0.055 2,660 (Exp 08/2025)

Options @ 0.25 120 (Exp 04/2023)

Fully Diluted 112,404

Market Cap @ CAD $0.16 $12,4 M


Corporate Structure

• South Star Battery Metals Corp. is a public company traded on the Toronto Venture Stock Exchange under the symbol STS and on the OTCQB under symbol STSBF.

• Brasil Graphite Corp. is a wholly owned subsidiary incorporated in the Cayman Islands.

• Brasil Grafite Mineração Ltda. (“BGSA”) is a is a wholly owned exploration and development company focused on developing the Santa Cruz Graphite Project (“Project”) in the state of Bahia, Brazil.

• BGSA owns 100% of the Santa Cruz Graphite Project.

Brasil Grafite Corp.

South Star Battery Metals Corp.

(TSXV: STS)

Brasil Grafite Mineração Ltda

Santa Cruz Graphite Project

100%

100%

100%

Dave McMillanChairman

Priscila Costa Lima

Indep. Director

Richard PearceExec. Director

Eric AllisonExec. Director

Dan WiltonIndep. Director

Marc LeducIndep. Director

Richard PearcePresident & CEO

Eric AllisonBusiness Dev.

Samantha Shorter CFO

CHF Capital Markets

Investor Relations


Leadership Team

BOARD OF DIRECTORS

MANAGEMENT


Investment Highlights

Phase 1 Construction Ready

Simple

Operations

Fully Permitted & Licensed

Environmental & miningReady for Construction

Mining Friendly District

With 80 + years of graphite production

Simple, Proven Flowsheet

& TechnologyExperienced Management

Proven Mine & Plant Builders

No Tailings Dam

With small environmental footprint

Open Pit Mining & No Drill & Blast

With Low Strip Ratio

Excellent InfrastructureWith gas, electric and excellent logistics


Investment Highlights

Phase 1 Derisked

Established utilities and

infrastructure

Proven tested process circuit

All licenses & permits are valid

& up-to-date

Low capital intensity

Low geological risk

LOW HIGH

MIDDLE

PROJECT RISK

Stepping into production

in phases

Projected increase

In demand

Supply imbalance

Supply chain diversification

Low environmental risk

Low OPEX

in proven producing district


Santa Cruz Graphite Project

INFRASTRUCTURE COMPETITIVE ADVANTAGES

Phase 1 Construction Ready

Excellent Infrastructure

Experiencedworkforce

nearby

Power, gas, water all

within 5km

Major port of Ilheus is

270km away via paved federal

highwaysfrom paved

highway

1.3km


ESG & Sustainability

ESG & Sustainable Production is part of our Corporate DNA

ENVIRONMENTAL + SOCIAL + GOVERNANCE

✓ Renewable sources provide 80% of

Brazilian energy generation

✓ Low cost, tax-incentive solar power

project being studied

✓ Sustainable tailings management

with filtered tailings/dry stack

✓ Effective water management & low

freshwater demand with process

water recirculated

✓ Waste characterized as inert/non-

dangerous

✓ Low strip ratio

✓ Low vegetation suppression for

project construction (<2ha)

✓ Committed to provide community

environmental education

✓ Progressive Reclamation

✓ First major industry in the region

✓ Committed to responsible, equitable

hiring practices in partnership w/

community/municipality

✓ Phase 1 - 60-65 Est. Direct Jobs

✓ Phase 1 – 350 Est. Indirect Jobs

✓ Phase 2 - 120-125 Est Direct Jobs

✓ Phase 2 – 700 Est. Indirect Jobs

✓ Committed to provide community

training & educational opportunities

✓ Focus on worker safety w/

compensation tied to performance

✓ Committed to transparency and open

communication

✓ Committed to

community/stakeholder engagement

✓ Committed to ethical, professional

interactions

✓ Review, evaluate and update

regularly governance policies

✓ 2 Independent Directors

✓ Executive management primarily

lives in Brazil and is on-site and

hands - on

✓ TSX and OTC listing

✓ Audited financials

✓ Compensation tied to ESG

performance

✓ Committed to joining key industry

organizations and ESG frameworks

✓ Committed to transparency and

open communications


Global Markets

Projected Large Increase in Graphite Demand

• Brazil has large internal demand for natural graphite (80-90kt/p.a.)• Graphite has many uses outside of battery metals

• High tech, graphene, military, etc…

• Natural graphite has advantages over synthetic:• Lower cost• Smaller environmental impacts• Easier to scale• Higher energy density

• Need 10-15 new mines by 2025 to meet 2x demand

Graphite Demand is in a Perfect StormFor Battery Metals Supply


Global Markets

Source: 2020 World Bank - Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition 2DS Scenario

0%

1%

1%

4%

7%

9%

11%

18%

37%

56%

99%

189%

231%

460%

488%

494%

0% 100% 200% 300% 400% 500% 600%

Titanium

Iron

Chromium

Manganese

Copper

Aluminum

Moly

Lead

Neodymium

Silver

Nickel

Vanadium

Indium

Cobalt

Lithium

Graphite

2018 to 2050Growth % (t)

1.73

3

8

15

33

138

366

415

644

694

781

1,378

2,268

4,590

5,583

0 1,000 2,000 3,000 4,000 5,000 6,000

Indium

Titanium

Neodymium

Silver

Moly

Vanadium

Chromium

Lithium

Cobalt

Manganese

Lead

Copper

Nickel

Graphite

Aluminum

2050 Demand Kt


Global Battery MarketBrazil - Premier Battery Metals Jurisdictions

• Brazil is largest graphite producer of high-quality graphite outside of China with 80+ years of continuous production and 3rd most important country in EV Battery Supply Chain.

Graphite Supply 2020 by Country

EV Supply Chain RankingBy Country

Representative Santa Cruz Graphite Project Concentrates

30# 4% 95%

50# 32% 95%

80# 27% 97%

140# 17% 97%

-140# 20% 97%

Mesh Size (#) Distribution %Cg

+50 mesh with 98% Cg and +99.9% Cg concentrates were also produced during testing.

63% of concentrates contained jumbo to large flakes (+30, +50 and +80 mesh).

Flake Percentage +80 Mesh


Santa Cruz World-Class Flake Sizes

Recovery 88%

CategoryTonnage

(t)

C

(%)

In-situ Graphite

(t)

Measured 3,947,550 2.40 94,740

Indicated 10,955,570 2.25 246,500

Total M&I 14,903,100 2.29 341,240

Inferred 7,911,450 2.32 183,550

Santa Cruz Graphite 2019 Mineral Resources Update Summary*

The 2019 updated Resource Estimate shows strong geologic potential and continuity of high-quality graphite mineralization in friable, easily mined, weathered materials. New areas with at-surface mineralization were discovered, and the deposit is open both along strike and at depth.

* Cautionary Note: This updated resource estimate is considered by STS to meet the requirements of a resource and reserve estimate technical report as defined by Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or drilling will be required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources.


2019 Santa Cruz Update Resource Estimate*

Santa Cruz Graphite Mineral Reserves Summary*

The financial analysis in 2020 PFS shows very favourable and robust results that highlight the Santa Cruz Project’s advantages in the graphite sector.

* Cautionary Note: This PFS is considered by STS to meet the requirements of a Preliminary Feasibility Study as defined by Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. The economic analysis contained in the technical report is based, in part, on Inferred Resources (as defined in NI 43-101) and is preliminary in nature. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or drilling will be required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources. There is no certainty that the reserve's development, production and economic forecasts on which the PEA is based will be realized.


2020 Santa Cruz Preliminary Feasibility Study*

Post-tax NPV5% US$ 81,200,000

Post-tax all Equity IRR 35% p.a.

Post-Tax Free Cash Flow (LOM) US$129M

Payback Period 4 years

Key Financial Results

Mining Method Open Pit

Process/Metallurgy Milling & Flotation

Life of Mine 12 years

Annual Production (years 1-2): 5,000 t p.a.

Annual Production (year 4-11): 25,000 t p.a

Capital Costs – Phase 1 US$ 7,300,000


Avg. Operating Costs(LOM): US$ 396 per tonne of conc.

Avg. Weighted Price: US$ 1287/t

Key Parameters

Mineral Reserve Estimate

Tonnage CgIn-situ

Graphite

(t) (%) (t)

Proven 3,989,635 2.49 99,340

Probable 8,318,795 2.35 195,490

Total P&P 12,308,500 2.40 295,400

Enterprise Value as % of NPV

• Currently Undervalued When Compared to Peer Group

STS Value Proposition


Enterprise Value / T of Cg

Capital Intensity US$/T of Capacity

• Low CAPEX and First Quartile OPEX In a District with 80+ Years of ContinuousOperations



OPEX US$/T

VRC

SRG

LLG

GPH

LML

ZEN

FMS

NGC

TON

NOU

RNU

STS

BEMGPXNEXT

EGR

BKT

WWR

MNS

-

50

100

150

200

250

300

350

400

450

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

CA

PEX

-U

S$M

IRR - ATAX

Net Present Value per Share

Outstanding: C$2.52Fully Diluted: C$2.13

CAPEX vs IRR (ATAX)

• Low CAPEX and High Return on Investments



STS Ph 1&2SJL

EGA LION

GEM

STS Ph 1

BSMLMR CVE HXG

BEM

NG

VRCRNU

WKTCY SRG

FMS

GRAT BATGPH

BKT

SVMWWR

MNS

EGR

TLG

NOU

NEXT

1

10

100

1000

0 1 2 3 4 5

Mar

ket

Cap

(Lo

g $

M X

chan

ge C

urr

ency

)

Study PhaseMarket Cap < C$20M C$20M < Market Cap < C$50M C$50M < Market Cap < C$100M Market Cap > C$100M

TR PEA PFS FS Licensed & Detailed Eng

Study Phase Vs. Market Cap

• Compelling Value Proposition with Construction Ready Project



Why South Star?


✓ Mining friendly

jurisdiction

✓ Great infrastructure

✓ Great logistics

✓ Prolific graphite

producing region

✓ Experienced workforce

✓ Large internal market for

graphite in Brazil

✓ PFS NI43-101 & updated

Resource

✓ Pilot plant testing

completed

✓ High proportion of large

flakes

✓ 1st Quartile OPEX

✓ Low CAPEX

✓ Robust economics

✓ Large geological upside

✓ Management &

Directors hold ~25%

✓ Experienced mine

builders, operators and

financiers

✓ Decades of experience

in Brazil

✓ ESG is in our DNA

✓ Expanding demand in

Brazil

✓ Growing Li-Ion battery

market

✓ New markets developing

✓ First production by

the end of 2022

Santa Cruz Project

Time

Brazil Location

Team

Near-term graphite producer with responsible and sustainable production, committed to tangible, long-term benefits for employees, communities, and stakeholders.

For more information, please contact:

Richard PearceCEO/President

CHF Capital Markets (Canada IR)Iryna Zheliasko, ManagerPhone: 416 868 1079 x 229Email: [email protected]

RBMG – RB Milestone Group LLC (IR US)Trevor Brucato, Managing DirectorEmail: [email protected]

Mr. Dave McMillan, Chairman Email: [email protected]

Email: [email protected]: www.southstarbatterymetals.com Twitter: @southstarbmFacebook: @southstarbatterymetalsLinkedIn: @southstarbatterymetals

Suite 1200 - 750 West Pender StreetVancouver, British ColumbiaCanada, V6C 2T8

R. Barão do Triunfo, 612 – Cj 2210Brooklin Paulista – São Paulo SPBrasil, 04602-002

TSXV: STS | OTCQB: STSBF

mailto:[email protected]

mailto:[email protected]

https://twitter.com/southstarbm

https://www.facebook.com/southstarbatterymetals

https://www.linkedin.com/company/southstarbatterymetals/

APPENDIX 1 - PHASE 1 PROJECT DETAILS (5,000 TPY PILOT PLANT)


20 Year Mine Life with Terminal Value

Path to Production – Macro Schedule


2021 Key Milestones

▪ Secure Offtake/Supply Agreement▪ Complete Debt/Equity Finance for

Phase 1▪ Begin Construction within 2-3

months of financing▪ 10-12 month construction schedule

• Environmental Permit Approved for 4 Years

PHASE 1 – LICENSING & PERMITTING


• Mining License Approved for 3 Years by ANM on Dec 31, 2020• Phase 1 Operations are fully licensed• Permits and licenses can be renewed

27TSXV: STS | OTCQB: STSBF

PHASE 1 – ROBUST FINANCIAL METRICS & POTENTIAL RETURNS

• 12-month Construction Schedule• Currently Trading at 4% of Phase 1 NPV or 2% of Phase 1+2 NPV• Target Valuation in 24-36 Months

• C$50M = US$36M• Conservative Approach to Valuation

• Comparables (6-8x EBITDA)• 75% Phase 1 NPV or 44% of Phase 1 + 2 NPV

NPV5% US$ 30,9M

NPV5% + Terminal Value US$ 51,8M

IRR 32% p.a.

Cash Flow (LOM) US$62M

Payback Period (From Construction Kickoff) 3.4 years

Mining Method Open Pit

Process/Metallurgy Milling & Flotation

Life of Mine (LOM) 20 years

Annual Production (years 1): 3,000 t p.a.

Annual Production (years 2): 5,000 t p.a.

Annual Production (year 3-20): 6,000 t p.a


Avg. Operating Costs(LOM): US$ 546 per tonne of conc.

Avg. Weighted Price: US$ 1287/t Source: Benchmark Mineral Intelligence

• Graphite amounts to over 95% of anode material for commercial battery technologies

• No substitutes on the horizon

www.southstarbatterymetals.com

santa cruz graphite project

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