South Star Mining Announces Positive Assay Results from the 2018 Drilling Program at its Santa Cruz Graphite Project

January 21st, 2018 / TheNewswire / Vancouver, B.C. - South Star Mining Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBF) is pleased to announce that it has received the complete assay results from the 2018 exploration program (Program) at its Santa Cruz Graphite Project (Project) in Bahia, Brazil. The field investigations portion of the Program was completed in December of 2018. The Company's previously released PEA (see News Release dated 10/23/2017) reported Indicated Resources of 14,990,400 tons @ 2.70% Cg and Inferred Resources of 3,572,100 tons @ 2.90% Cg.

With the goal of moving towards production in 2020 using a trial mining license and a pilot plant, South Star's 2018 exploration program was focused on the Sao Manoel and Sao Rubens targets of the Project. The Program included surface trenching along with 531.65 meters of diamond (8 holes - HQ) and 1288.25 meters (32 holes) of reverse circulation (RC) drilling. The majority of the 2018 Program concentrated along 700 meters of strike at the Sao Manoel target, where previous exploration programs indicated significant graphite mineralization. The Program was designed to test lateral extents and depth of mineralization along this target, and completed work included all the trenching, 7 diamond holes, and 27 RC holes. The Sao Rubens portion of the Program was focused on upgrading the resources in that area to allow for future mine planning flexibility and consisted of 1 diamond hole and 5 RC holes.

The Company currently plans to incorporate the results of the Program into an updated resource estimate, coupled with final metallurgical and dry stack tailings testing, to be completed in Q2 of 2019. Engineering, testing, environmental and licensing activities are on-going with completion, including the delivery of a prefeasibility report, scheduled for Q3 of 2019

Company CEO Eric Allison stated "The results from the 2018 Program have been excellent proving continuity in friable, weathered materials containing strong graphite mineralization over significant intervals, both along strike and at depth. Using both targets, we have developed an excellent preliminary outline of a good starter pit that can be used during initial pilot plant production and beyond. Several holes begin at or near surface in good mineralized materials that are amenable to low cost strip mining."

Mr. Allison added "Only a small percentage of the land package has been explored and there is great potential for exploration upside and resource expansion at Santa Cruz. The positive results from the Program, along with the first phase of testing with Urbix, which was discussed in a previous release on November 21, 2018, supports our conviction that graphite potentially produced from Santa Cruz will be very similar to the high-quality flake graphite that has been continuously produced from this region in Brazil for over 70 years."

2018 Exploration Program Drill Highlights

• - 49.6m with 3.45% Cg in hole 55-SCP-DDH-001

  - 26.2m with 3.32% Cg in hole 55-SCP-DDH-002

  - 19m with 2.69% Cg in hole 55-SCP-DDH-005

  - 6m with 2.39% & 24.8m with 1.34% Cg in hole 55-SCP-DDH-007

  - 16m with 2.07% & 10m with 2.10% Cg in hole 55-SCP-DDH-008

  - 2m with 6.90% & 9m with 1.68% Cg in hole 55-SCP-RC-001

  - 12.5m with 2.62% Cg in hole 55-SCP-RC-005A

  - 10.75m with 2.96% Cg in hole 55-SCP-RC-005B

  - 18m with 3.5% Cg including 3m with 5.24% in hole 55-SCP-RC-008

  - 18m with 3.04% & 21m with 3.25% Cg in hole 55-SCP-RC-013

  - 8m with 2.67% Cg including 3m with 4.49% Cg in hole 55-SCP-RC-014

  - 8m with 2.96% Cg at or near surface in hole 55-SCP-RC-015

  - 31m with 3.55% Cg including 1m with 11.81% Cg at or near surface in hole 55-SCP-RC-016

  - 25m with 2.34% Cg including 10m with 2.92% Cg at or near surface in hole 55-SCP-RC-017

  - 13m with 3.58% Cg in hole 55-SCP-RC-024

  - 12m with 3.70% Cg in hole 55-SCP-RC-030

  - 10m with 5,09% Cg at or near surface in hole 55-SCP-RC-031

  - 28 linear meters with 1.99% Cg in Channel Sample TR-005

  - 12 linear meters with 2.95% including 6 linear meters at 4.75% Cg in Channel Sample TR-006

All of the diamond holes and 17 of the RC holes intersected more than 4 meters of mineralization above the cutoff grade of 1% Cg. 10 holes ended in mineralization above the cutoff grade.

• - For maps of the exploration program, please click here.

  - For two sections in the Sao Manoel target, please click here.

  - For a complete table of assay results, please click here.

Richard L. Pearce is a Qualified Person as defined by National Instrument 43-101 and is responsible for the preparation and approval of the technical information disclosed in this news release. Drill composites were calculated using cut-off values of 1% Cg. Drill intersections are calculated using uncut assays and are reported as drilled thicknesses. True widths vary depending on the hole angles. All samples were submitted to SGS Geosol Laboratory in Belo Horizonte, Minas Gerais, Brazil and were analyzed for graphitic carbon (Cg) using the LECO carbon-sulfur analyzer and high temperature combustion infrared detection methodology (SGS code CSA05V). Control samples (standards, blanks and duplicate samples at the field and preparation stages) were inserted on a regular basis.

ABOUT SOUTH STAR MINING CORP.

South Star Mining Corp. is focused on the acquisition and development of near-term mine production projects in Brazil to maximize shareholder value. To learn more, please visit the Company website at www.southstarmining.com.

On behalf of the Board,

Mr. Eric Allison

Chief Executive Officer

Ph: +1 (203) 918-3098

Email: eric@southstarmining.com

For additional information, please contact:

Mr. Dave McMillan

Chairman

Ph: +1 778-773-4560

Email: davemc@telus.net

Mr. Kris Kottmeier

VP Corp Development

Toll Free: 1-877-828-8983

Email: kris@southstarmining.com

CAUTIONARY STATEMENT

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This news release and the PEA contain references to inferred resources. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements.

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