Mr. Charles Funk reports

HELIOSTAR ANNOUNCES $5 MILLION NON-BROKERED PRIVATE PLACEMENT

Heliostar Metals Ltd. has arranged a non-brokered private placement of up to 18,867,924 common shares at a price of 26.5 cents per offered share for gross proceeds of up to approximately $5-million.

The company intends to use the net proceeds of the private placement for the commencement of drilling at Ana Paula and general working capital.

The private placement is scheduled to close on or about June 18, 2024, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

Up to 3,773,585 of the offered shares (the LIFE portion) are expected to be offered to purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions and will not be subject a statutory hold period. Up to 15,094,340 of the offered shares are expected to be offered to purchasers pursuant to the accredited investor exemption under Section 2.3 of NI 45-106 and will be subject to a statutory hold period of four months and one day.

There is an offering document related to the LIFE portion that can be accessed under the company's profile on SEDAR+ and on the company's website. Prospective investors should read the offering document before making an investment decision.

Debt financing update

On May 7, 2024, the company announced that it had entered into a non-binding letter of intent in respect of a senior secured debt facility for the aggregate principal amount of $20-million (U.S.). Closing of the private placement is not expected to impact the debt facility.

The company anticipates the debt facility to be completed by the end of July, 2024.

Statement of qualified person

Stewart Harris, PGeo, a qualified person, as such term is defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein.

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-per-cent-owned Ana Paula project in Guerrero, Mexico. In addition, Heliostar is working with the Mexican 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.

We seek Safe Harbor.