An anonymous director of Phoenix Gold reports

Phoenix Gold Fund Ltd., of Kuala Lumpur, Malaysia, has acquired an aggregate of eight million common shares and eight million share purchase warrants of Heliostar Metals Ltd., pursuant to a non-brokered private placement. Phoenix acquired the common shares at a price of 25 cents per share for a total purchase price of $2-million. The issuer's head office is located at 1090 West Georgia St., Suite 700, Vancouver, B.C., V6E 3V7.

Immediately prior to the acquisition, Phoenix owned 2,614,533 common shares of the issuer, representing 6.08 per cent of the latest issued and outstanding shares of the issuer. In addition, Phoenix owned 250,000 share purchase warrants. If Phoenix exercised all of its warrants, it would then have owned 2,864,533 common shares of the issuer, representing 6.62 per cent of the issued and outstanding shares of the issuer on a partially diluted basis.

As a result of the acquisition, Phoenix now owns 10,614,533 common shares of the issuer, representing 19.29 per cent of the issued and outstanding shares of the issuer on an undiluted basis. In addition, Phoenix owns 8.25 million share purchase warrants. If Phoenix exercises all of its warrants, it would own 18,864,533 common shares of the issuer, representing 29.81 per cent of the issued and outstanding shares of the issuer on a partially diluted basis, assuming no further common shares of the issuer have been issued.

Phoenix acquired the securities for investment purposes and has no present intention to dispose of securities of the issuer. Phoenix Gold may in the future participate in financings and/or acquire or dispose of securities of the issuer in the market, privately or otherwise, subject to a number of factors, including general market conditions, and other available investment and business opportunities.

The disclosure respecting Phoenix's shareholdings contained in this news release is made pursuant to National Instrument 62-103 and/or the National Instrument 62-104, and a report respecting the above acquisition will be filed with the applicable securities commissions using SEDAR and will be available for viewing on SEDAR.