Mr. Charles Funk reports

HELIOSTAR ANNOUNCES INITIAL CLOSING OF $4.5 MILLION OFFERING WITH LEAD ORDER FROM ERIC SPROTT

Heliostar Metals Ltd. has closed the initial tranche of its non-brokered private placement offering previously announced on June 5, 2024. Pursuant to the offering, the company issued an aggregate of 16,904,585 common shares at a price of 26.5 cents per share for gross proceeds of approximately $4,479,715.

The company expects to close a final tranche of the offering upon receipt of TSX Venture Exchange approval for the creation of a new insider of the company. Assuming such approval is obtained, the final tranche is expected to close on or around June 28, 2024, for gross proceeds of approximately $499,790.

It offered 3,773,585 shares 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. It offered 13,131,000 shares to purchasers pursuant to the accredited investor exemption under Section 2.3 of NI 45-106, and they will be subject to a statutory hold period of four months and one day.

Eric Sprott increased his ownership in the company by participating in the offering with a lead order through 2176432 Ontario Ltd., acquiring 7.55 million shares for gross proceeds of $2,000,750.

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

Closing of the offering is subject to final approval of the TSX Venture Exchange.

The company also paid finders' fees in connection with a portion of the financing, consisting of a cash fee of $200,000. In addition, the company issued the finders 554,718 non-transferable finders' warrants. Each finder's warrant entitles the holder to purchase one share at a price of 26.5 cents for a period of 12 months.

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.

Ana Paula hosts measured and indicated resources of 710,920 ounces of gold (320,204 measured and 390,716 indicated ounces) at 6.60 grams per tonne gold and an inferred resource of 447,512 ounces of gold at 4.24 g/t gold. The asset is permitted for open-pit mining, and contains significant existing infrastructure, including a portal and a 412-metre-long decline.

We seek Safe Harbor.