Mr. Charles Funk reports

HELIOSTAR CLOSES $6M FINANCING WITH ERIC SPROTT

Heliostar Metals Ltd. has closed a non-brokered private placement of 10 million units at a price of 60 cents per unit for gross proceeds of $6-million. Eric Sprott, through 2176423 Ontario Ltd., subscribed for the entire private placement.

Each unit consists of one common share in the capital of the company and one-half non-transferable common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share at an exercise price of 90 cents per warrant share for a period of 24 months following the closing date of the private placement.

The company intends to use the net proceeds of the private placement for working capital and general corporate purposes.

The units issued under the private placement will have a statutory hold period of four months and one day, which will expire on Feb. 16, 2025. The company paid finders' fees of $180,000 (3 per cent) to Primary Capital Inc., in accordance with the policies of the TSX Venture Exchange.

Early warning disclosure

Mr. Sprott, through 2176423 Ontario, a corporation which is beneficially owned by him, acquired 10 million units for a total consideration of $6-million. Prior to the private placement, Mr. Sprott beneficially owned and controlled 17.98 million common shares and 2,423,333 warrants, representing approximately 8.8 per cent of the outstanding common shares on a non-diluted basis and approximately 9.9 per cent on a partially diluted basis assuming the exercise of such warrants.

Following the completion of the private placement, Mr. Sprott beneficially owns and controls 27.98 million common shares and 7,423,333 warrants, representing approximately 13 per cent of the outstanding common shares on a non-diluted basis and 15.9 per cent on a partially diluted basis assuming the exercise of such warrants.

The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Heliostar, including on the open market or through private acquisitions, or sell securities of Heliostar, including on the open market or through private dispositions, in the future, depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of Mr. Sprott's early warning report will appear under the company's profile on SEDAR+ and may also be obtained by calling Mr. Sprott's office at 416-945-3294 (7 King St. East, suite 1106, Toronto, Ont., M5C 3C5).

About Heliostar Metals Ltd.

Heliostar aims to grow to become a mid-tier gold producer. The company is focused on developing the 100-per-cent-owned Ana Paula project in Guerrero, Mexico, and has recently entered into an agreement to acquire a portfolio of production and development assets in Mexico.

We seek Safe Harbor.