Heliostar Poised to Unlock Value at High-Grade Ana Paula Gold Project in Mexico

• Ana Paula is a high-grade gold project in Mexico with consistently strong drill results like 100-130m intercepts at 5-8g/t gold.
• HelioStar acquired the project in early 2023 and sees it as having potential for a high-grade underground mine.
• Key upcoming catalysts are metallurgy results and a resource update in November focused on the high-grade potential.
• The project benefits from extensive existing infrastructure like roads, power, and a permitted decline already started.
• The plan is to complete a PFS in late 2023 and continue drilling to grow the resource above 1.5 million ounces before doing a full FS, targeting production in 2025.

About Heliostar Metals

Heliostar Metals is a Canadian exploration and development company focused on advancing high-grade gold projects in Mexico. The company's flagship asset is the Ana Paula project in Sonora state, which hosts a sizeable high-grade gold system with expansion potential. Led by a technical team with extensive experience discovering and developing mines globally, Heliostar is poised to unlock significant shareholder value as it advances Anapola towards production.

Heliostar acquired the Ana Paula project in early 2023 from prior operators who faced broader corporate challenges unrelated to Ana Paula's potential. Over $75 million has been invested by previous owners, providing Heliostar with extensive infrastructure, including an exploration decline, pads, and a plant. The project benefits from an existing open pit permitting license, providing a clear pathway to production.

Heliostar is led by CEO Charles Funk, a geologist with over 25 years of experience exploring and developing projects globally. The company raised capital earlier this year to fund an aggressive exploration program at Ana Paula to expand the known high-grade resource. A recently completed financing provides a strong treasury to continue advancing the project.

Interview with Charles Funk, CEO, Heliostar Metals

Rapid Resource Growth Through Aggressive Drilling

Ana Paula currently hosts an open pit resource of approximately 500k ounces grading 0.8 g/t gold. However, Heliostar’s technical team recognized the potential for a much larger high-grade underground resource. Recent drilling has intercepted exceptional grades over broad widths, including 50m at 10-15 g/t gold and 100-130m intercepts averaging 5-8 g/t gold.

These results demonstrate the potential for a 1.5 million ounce high-grade underground resource averaging over 5 g/t gold. Mineralization remains open along strike and at depth, providing further room for resource growth. Heliostar plans to continue aggressive drilling over the coming months to expand the high-grade resource. A resource update expected in November will provide the first glimpse of Ana Paula's emerging world-class potential.

De-Risking Path to Production

Ana Paula benefits from existing infrastructure and permitting, allowing for a rapid timeline to production. The project’s exploration decline provides a ready-made platform to access the high-grade gold mineralization underground. Heliostar plans to submit a modification to the existing open pit permit in early 2024 to change the scope to an underground operation. CEO Charles Funk believes the underground permit could be secured within 12 months, setting the stage for a potential construction decision by the end of 2024.

The company is also advancing metallurgical studies to further optimize process design and economics. Results expected over the coming months will provide key inputs for an updated economic study slated for late 2024.

Based on advanced engineering completed by past operators, Ana Paula has clear potential for an underground mining operation averaging 170,000 ounces per year over a 10-year mine life. Heliostar aims to take advantage of existing infrastructure, strong community support, and permitting progress to swiftly advance the project towards a production decision.

Prospects in Changing Political Environment

The potential political landscape in Mexico introduces some uncertainty as the country heads towards elections next year. However, Heliostar maintains confidence in Ana Paula's prospects regardless of policy changes. The existing open pit permits provide flexibility to pursue either open pit or underground options. And the project’s strong community support, established through years of open dialogue and responsible operations, is expected to withstand political turbulence. Ana Paula is primed to emerge as Mexico’s next gold mine against this shifting backdrop.

Heliostar offers investors an exceptional opportunity to get in early on the next potential high-grade gold mine in Mexico. Upcoming catalysts include further assay results demonstrating resource growth potential, an updated resource estimate in November, and metallurgical results over the coming months.

The company’s focused technical team and strategic vision has unlocked Ana Paula's potential as a world-class deposit. Heliostar is positioned to create significant value for shareholders as it systematically advances Ana Paula on the path towards production. With drilling accelerating and key results pending, now is the time for investors to gain exposure before the next major wave of positive newsflow.