Heliostar Drills 31.8 g/t Gold over 9.5 Metres within 8.0 g/t Gold over 72.0 Metres in Up-Plunge Target at the Ana Paula Project

Highlights:

• Hole AP-23-300

• Hole AP-23-302

• Hole AP-23-299

• The up-plunge target is expected to connect into a single block of continuous high grade gold mineralization.

• Hole AP-23-300 is 480% better than predicted in the current resource model at a >5g/t cutoff grade

Vancouver, British Columbia--(Newsfile Corp. - August 9, 2023) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to report additional drill results from the Ana Paula project in Mexico ("Ana Paula" or the "Ana Paula Project"). These four holes continue to assess mineralization up-plunge of the High Grade Panel at the core of Ana Paula.

Heliostar CEO, Charles Funk, commented, "Drilling at Ana Paula continues to exceed our expectations and deliver impressive gold intercepts. The headline hole, AP-23-300, is a 480% increase to the current resource model prediction, at a >5 g/t gold cut-off grade. The most easterly of Heliostar's holes, AP-23-302 was also particularly impactful with an intersection of 51 metres @ 5.0 g/t gold in an area where high gold grades were not modelled in the 2023 PFS resource. These results validate our belief that we can meaningfully increase the value of the Ana Paula project. The Company continues its well-funded expansion and infill drilling program of the High Grade Panel. Additional drill results will continue to be announced ahead of the planned resource update in November 2023."

Drill Results

Results from this press release are from Heliostar's up-plunge growth target at Ana Paula.

Hole AP-23-299 tested the up-dip and central portion of the High Grade Panel. This hole extended mineralization towards the surface and returned 38.0 metres grading 6.95 g/t gold, including 11.0 metres grading 15.8 g/t gold.

Hole AP-23-300 tested a gap in the high grade in the up-plunge area where hole AP-23-297 had intersected a sub-interval of 24 metres at 8.8 g/t gold. Hole AP-23-300 returned 38 metres grading 13.4 g/t gold including 9.5 metres grading 31.8 g/t gold to better define the northern extent of High Grade Panel in this area.

Hole AP-23-301 tested deeper beneath AP-23-300 in an area where the panel is narrower. It intersected 8.5 metres grading 3.0 g/t gold.

Figure 1: A section through the resource model from 2023 PFS¹ highlighting the High Grade Panel (clipped to greater than 5g/t resource blocks). Heliostar results labelled with new holes in red boxes. Completed and ongoing holes are shown in blue, and Growth and Infill targets areas labelled. To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/7729/176551_273e743484f54878_003full.jpg^[1]  

Figure 2: A plan map with the resource model from 2023 PFS¹ highlighting the High Grade Panel (clipped to greater than 5g/t resource blocks). Heliostar results labelled with new holes in red boxes. Completed and ongoing holes are shown in blue, and Growth and Infill targets areas labelled.  To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/7729/176551_273e743484f54878_004full.jpg^[2]  

Hole AP-23-302 tested a gap in the high-grade mineralization at the far east of the High Grade Panel in an area where no high grade mineralization was modelled in the resource. It returned a strong intercept of 51.8 metres grading 5.01 g/t gold including 4.7 metres grading 11.6 g/t gold. This is particularly impactful as it has the potential to infill a large gap in the panel with gold mineralization (Figure 1).

Table 2: Significant Drill Intersections

1 includes 0.40 metres of sample removed for geotechnical studies and assumed to have 0 g/t gold2 includes 0.82 metres of samples removed for geotechnical studies and assumed to have 0 g/t gold3 includes 0.40 metres of samples removed for geotechnical studies and assumed to have 0 g/t gold4 includes 0.87 metres of samples removed for geotechnical studies and assumed to have 0 g/t gold

Drill Results Impact

The potential impact of the drill results on future resource models can be demonstrated by comparing the current results to the existing model (as reported in the 2023 prefeasibility study¹). Drilling that outperforms (i.e., is higher grade or wider than) the model may be expected to improve the grade and size of future resource and reserve estimates. Using a 5 g/t cut-off grade provides a useful benchmark to the most financially impactful ounces in an underground mining scenario.

At a 5 g/t cutoff, hole AP-23-299 has an 83% increase when compared to an expected intercept calculated from the existing resource model. Using the same criteria; AP-23-300 has a 480% increase compared to the expected intercept from the resource model, AP-23-301 has a 63% decrease compared to the expected intercept from the resource model and AP-23-302 was a significant increase as no high grade was estimated in the resource model.

Drilling Progress

The Company is on schedule and on budget with the drilling program. The Company completed eighteen holes at Ana Paula. The Company has reported results from twelve holes to date. Holes AP-23-302 through and AP-23-305 are the Company's first holes targeting high-grade mineralization further west into the down-plunge target. The holes intersected sulfide mineralization throughout, particularly AP-23-303.

The Company is finishing two infill holes in the vicinity of hole AP-23-291. The result will be a cross-section of tightly spaced intercepts and these holes will support resource modelling and provide metallurgical material for analysis.

Table 2: Drill Hole Details

Quality Assurance / Quality Control

Core samples were shipped to ALS Limited in Santiago Queretaro, Queretaro for sample preparation and for analysis at the ALS Laboratories in North Vancouver. The North Vancouver ALS facility is ISO/IEC 17025 certified. Gold was assayed by 30-gram fire assay with atomic absorption spectroscopy finish and overlimits were analysed by 50g fire assay with gravimetric finish.

Control samples comprising certified reference samples and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.

Statement of Qualified Person

Stewart Harris, P.Geo., a Qualified Person, as such term is defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein.

Investor Relations

The Company entered into a marketing services arrangement with Mr. Robert Sinn on May 5, 2023, pursuant to which Mr. Sinn agreed to provide certain investor relation services to the Company over a 12-month period for a total fee of US$25,000, which was paid upfront. The services to be provided include featured articles and videos on the Company and coverage of news flow on social media. Robert Sinn is at arm's length to the Company, and neither holds any securities of the Company nor has any interest, direct or indirect, in the Company.

Robert Sinn is a trader, portfolio manager, and analyst in capital markets. Mr. Sinn studied finance and real estate at university and has been blogging about the stock market, precious metals, and mining for over a decade. Mr. Sinn is based in Florida, USA.

About Heliostar Metals Ltd.

Heliostar is a junior mining company with a portfolio of high-grade gold projects in Mexico and Alaska.

The Company is focused on developing the 100% owned Ana Paula Project in Guerrero, Mexico. In addition, Heliostar is working with the Mexican federal and local government to permit the San Antonio Gold Project in Baja Sur, Mexico. The Company continues efforts to explore the Unga Gold Project in Alaska, United States of America.

The Ana Paula Project deposit contains proven and probable mineral reserves of 1,081,000 ounces of gold (630,000 proven and 451,000 probable ounces) at 2.38 grams per tonne ("g/t") gold and 2,547,000 ounces of silver (1,322,000 proven and 1,226,000 probable ounces) at 5.61 g/t silver. Ana Paula hosts measured and indicated resources of 1,468,800 ounces of gold (703,800 measured and 765,000 indicated ounces) at 2.16 g/t gold and 3,600,000 ounces of silver (1,637,000 measured and 1,963,000 indicated ounces) at 5.3 g/t silver. The asset is permitted for open-pit mining and contains significant existing infrastructure including a portal and a 412-metre-long decline.

References

1 An updated prefeasibility study titled "Ana Paula Project NI 43-101 Technical Report Preliminary Feasibility Study Update" was filed on SEDAR on April 6, 2023, with an effective date of February 28, 2023, prepared for the Company by Daniel H. Neff, PE, Art S. Ibrado, PhD, PE, Richard K. Zimmerman, RG, SME-RM, Craig Gibson, PhD, CPG, Andrew Kelly, P.Eng., Gordon Zurowski, P.Eng., Paul Daigle, P.Geo., Gilberto Dominguez, PE and James A. Cremeens, PE, PG.

For additional information please contact:

Charles Funk

Chief Executive OfficerHeliostar Metals LimitedEmail: charles.funk@heliostarmetals.com^[3]

Rob Grey

Investor Relations ManagerHeliostar Metals LimitedEmail: rob.grey@heliostarmetals.com^[4]

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

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the exploration, development, and production at the Company's properties; permitting at the San Antonio project; the release of exploration results; and future resource and reserve estimates. Forward-looking statements and forward-looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of the Company, future growth potential for the Company and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect the Company's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in the Company's public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify key factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176551^[5]

References

1. ^{^} https://images.newsfilecorp.com/files/7729/176551_273e743484f54878_003full.jpg (images.newsfilecorp.com)
2. ^{^} https://images.newsfilecorp.com/files/7729/176551_273e743484f54878_004full.jpg (images.newsfilecorp.com)
3. ^{^} charles.funk@heliostarmetals.com (www.newsfilecorp.com)
4. ^{^} rob.grey@heliostarmetals.com (www.newsfilecorp.com)
5. ^{^} https://www.newsfilecorp.com/release/176551 (api.newsfilecorp.com)