Mr. Charles Funk reports

HELIOSTAR ANNOUNCES 2024 PRODUCTION AND PROVIDES 2025 PRODUCTION AND COST GUIDANCE

Heliostar Metals Ltd. produced 10,391 gold equivalent ounces (GEOs) (10,156 gold ounces and 20,054 silver ounces) in the fourth quarter of 2024 (the third quarter of the company's financial year).

This resulted in a total 2024 production of 20,795 GEOs (20,298 gold ounces and 43,076 silver ounces). As a result, the company exceeded its production guidance for 2024, which was 20,000 to 20,250 GEOs (see the news release dated Nov. 14, 2024). Financial results for the quarter ended Dec. 31, 2024, will be reported during February, 2025. Cash costs and all-in sustaining costs (AISCs) are expected to be below the bottom end of the guidance range.

Highlights:

• 2024 production of 20,795 GEOs (20,298 gold ounces and 43,076 silver ounces);
• 2025 production guidance of 31,000 to 41,000 GEOs.

In the reporting period, Heliostar Metals entered into an agreement to acquire the Mexican assets of the former Argonaut Gold on July 11, 2024. The operations were managed by Florida Canyon Gold Inc. (FCGI) under agreed covenants until closing on Nov. 7, 2024.

Following cessation of mining operations in September, 2023, the La Colorada mine continued to produce metals from releaching activities during 2024. Similarly, at the San Agustin mine, mining operations were ended in September, 2024. San Agustin has continued to produce metals from releaching operations.

2025 production guidance

In 2025, the company expects to produce 31,400 to 41,000 GEOs at an all-in sustaining cost of $1,950 (U.S.) to $2,000 (U.S.) per GEO.

At La Colorada, exploration work during the second half of 2024 confirmed the potential to exploit metals from previously stockpiled material, known as the Junkyard stockpile. Mining operations were restarted at La Colorada from the Junkyard stockpile in January, 2025, and it is planned that production will continue through the year.

At San Agustin, residual production is continuing into 2025. The company has submitted a permit application to expand the open pit that would allow mining operations at San Agustin to recommence in 2025. Initial capital requirements result in an elevated cash cost and AISC for the San Agustin restart in 2025. This is expected to materially reduce in 2026 with the San Agustin operations, Durango, Mexico, National Instrument 43-101 technical report supporting an AISC of $1,790 (U.S.) for life of mine (excluding mine closure costs).

Drilling and technical trade-off studies will continue at Ana Paula. The company is completing a feasibility study on Ana Paula during 2025 to allow for a construction decision shortly thereafter.

Statement of qualified persons

Gregg Bush, PEng, 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. Mr. Bush is employed as chief operating officer of the company.

Non-GAAP (generally accepted accounting principles) financial measures

Management believes that the reported non-GAAP financial measures will enable certain investors to better evaluate the company's performance, liquidity and ability to generate cash flow. These measures do not have any standardized definition under IFRS (international financial reporting standards), and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently.

About Heliostar Metals Ltd.

Heliostar is a gold producer with production from operating mines in Mexico. This includes the La Colorada mine in Sonora and the San Agustin mine in Durango. The company also has a strong portfolio of development projects in Mexico and the United States. These include the Ana Paula project in Guerrero, the Cerro del Gallo project in Guanajuato, the San Antonio project in Baja Sur and the Unga project in Alaska.

We seek Safe Harbor.