Mr. Charles Funk reports

HELIOSTAR DRILLS 30.2M GRADING 6.29G/T GOLD IN FIRST RESOURCE CONVERSION HOLES AT ANA PAULA

Heliostar Metals Ltd. has released its first results from the current 15,000-metre drill program at its 100-per-cent-owned Ana Paula project in Guerrero, Mexico. The program has the primary goal of converting inferred ounces to higher confidence classifications, as well as supporting the continuing feasibility study and testing the next exploration targets around the Ana Paula deposit.

Highlights:

• 30.20 m grading 6.29 g/t gold from 195.8 m;
• 14.75 m grading 13.6 g/t gold from 153.5 m;
• 20.95 m grading 6.67 g/t gold from 113.5 m;
• 12.20 m grading 8.72 g/t gold from 344.5 m;
• Consistent gold mineralization at the western end of the high-grade panel;
• First results from a 15,000-metre program continuing throughout 2025.

Heliostar chief executive officer Charles Funk commented: "In 2025, Heliostar will drill more metres than we have in our entire company's history. We intend to drill between 40,000 to 50,000 metres from the close of the mine acquisitions late last year to the end of 2025. This drilling is being funded by cash flows from our operating mines. We are particularly excited to be undertaking our largest program at Ana Paula. These first results highlight the consistency of gold mineralization at the high-grade panel, where we have two rigs turning. One is focused on resource drilling to grow the resource and to convert inferred to higher confidence ounces, and the second is with a geotechnical focus to support the feasibility study. These are the first of consistent, drill results planned to be released monthly from Ana Paula through 2025 and into 2026."

Drilling program

Heliostar has two rigs turning with 18 holes completed and 5,556 metres drilled to date. Drilling is designed along north-south sections with angled holes to best define the overall east-west orientation of the high-grade panel. Heliostar's drilling approach at Ana Paula has been to rotate drilling by approximately 90 degrees from the majority of historic intercepts. This change has been interpreted by the company to have contributed to demonstrating more continuous and higher-grade gold mineralization within the high-grade panel than previous operators recognized.

Where appropriate, the holes are also being used to collect rock strength data, hydrogeologic data and samples for further metallurgical studies that will directly influence the Ana Paula mine design in the continuing feasibility study.

Drill results summary

Holes AP-25-323 and AP-25-325 are resource conversion holes drilled at the western end of the high-grade panel. Hole AP-25-323 was drilled further west than the most prospective polymictic breccia host unit and still returned a number of attractive intercepts, including 12.2 metres (m) grading 8.73 grams per tonne (g/t) gold from 344.5 m.

AP-25-325 is located approximately 30 m southeast of AP-25-323 and intercepted the favourable breccia host unit. The hole returned a wide, high-grade interval of 30.2 m grading 6.29 g/t gold from 195.8 m and a number of deeper intercepts that have the potential to expand the resource, including 4.5 m grading 12.6 g/t gold from 277.5 m down hole beneath the high-grade panel.

Holes AP-25-322 and AP-25-324 are geotechnical holes for mine development planning and returned assay results in line with expectations, including a hit of 14.75 m grading 13.6 g/t gold from 153.5 m in AP-25-322.

Drilling continues at the less well-defined western edge of the high grade panel, with results from three additional holes pending from this area. Recently, drilling has been focused in the centre of the high-grade panel with assays from seven holes pending from this area.

The next Ana Paula drill results are anticipated to be released in mid- to late September.

Quality assurance/quality control

Drill core is PQ size, and the core is cut in half, with half sent for analysis. Core samples were shipped to ALS Ltd. in Zacatecas, Mexico, for sample preparation and for analysis at the ALS laboratory in North Vancouver. The Zacatecas and North Vancouver ALS facilities are ISO/IEC 17025 certified. Gold was assayed by 30-gram fire assay with atomic absorption spectroscopy finish, and overlimits were analyzed by 30-gram fire assay with gravimetric finish.

Control samples comprising certified reference and blank samples were systematically inserted into the sample stream and analyzed as part of the company's quality assurance/quality control protocol.

True widths are not reported as mineralization at Ana Paula occurs as disseminations or vein stockworks with variable controls, including rock porosity, lithology and fault networks.

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. Mr. Harris is employed as exploration manager of the company.

About Heliostar Metals Ltd.

Heliostar is a gold mining company 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, United States.

We seek Safe Harbor.