Mr. Charles Funk reports

HELIOSTAR METALS ANNOUNCES $12 MILLION BOUGHT DEAL EQUITY FINANCING

Heliostar Metals Ltd. has entered into an agreement with Cormark Securities Inc. and Velocity Trade Capital Ltd., as co-lead underwriters on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 12 million common shares of the company at a price of $1 per share, representing total gross proceeds of $12-million.

The company has also granted the underwriters an option, exercisable at the offering price for a period of 30 days from and including the closing of the offering, to purchase up to an additional 15 per cent of the offering to cover overallotments, if any, on the same terms as the offering. Closing is expected on or about March 28, 2025, and is subject to regulatory approval, including that of the TSX Venture Exchange. In the event that the overallotment option is exercised in full, the total gross proceeds of the offering will be $13.8-million.

The net proceeds of the offering will be used for the development of the company's projects in Mexico, including drilling at Ana Paula, and for general corporate purposes, as will be set out in the prospectus supplement (as defined below).

The shares will be offered by way of a prospectus supplement to the company's existing Canadian base shelf prospectus dated June 19, 2023. The prospectus supplement will be filed in British Columbia, Alberta and Ontario. The shares will also be offered in the United States on a private placement basis pursuant to one or more exemptions from the requirements of the United States Securities Act of 1933, as amended, and may also be offered in such other jurisdictions as may be agreed upon by the company and the underwriters, in each case in accordance with all applicable laws, and provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.

Access to the prospectus supplement, the base shelf prospectus and any amendments thereto are provided in Canada in accordance with securities legislation relating to procedures for providing access to a shelf prospectus supplement, a base shelf prospectus supplement and any amendment to such documents. The base shelf prospectus is, and the prospectus supplement will be (within two business days from the date hereof), accessible through SEDAR+. An electronic or paper copy of the prospectus supplement, the base shelf prospectus and any amendment thereto may be obtained, without charge, from Cormark Securities Inc. by phone at 416-362-7485 or e-mail at ecm@cormark.com by providing the contact with an e-mail address or address, as applicable.

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.