Heliostar Samples 1,428 g/t AgEq Over 1.2 Metres, Expands District by 1,100% and Discovers New Veins at Oso Negro, Mexico

Vancouver, British Columbia--(Newsfile Corp. - June 3, 2021) - Heliostar Metals Limited (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to announce results from its 2021 exploration mapping and sampling program at Oso Negro in northern Sonora, Mexico.

Program Highlights at Oso Negro

• Multiple high grade channel samples define drill targets at the Prospecto Vein Zone including;
  • 1,428 grams per tonne ("g/t") silver equivalent ("AgEq") over 1.2 metres
  • 588 g/t AgEq over 1.8 metres
  • 362 g/t AgEq over 2.4 metres
  • 360 metres of strike with an average width of 1.3 metres and weighted average grade of 420 g/t silver equivalent
• Staking of a new claim, Angel de Plata 2, increases land position by 1,100% to 120 square kilometres at Oso Negro
• Discovery of two new vein corridors on the new claim with mine dump samples from historic workings up to 1,810 g/t AgEq

Heliostar CEO, Charles Funk, commented, "We now have over 360 metres of continuous, high silver and gold grades at the main Prospecto vein at Oso Negro and have defined drill targets on all three previously known veins on the property. In addition, the company has increased the land holding by over ten times and discovered two new silver-bearing veins. The Fresnos vein is locally up to 70 metres wide and may represent the shallow levels of a system. The Hebilla vein zone has many small, historic workings. Grab samples from these locales contained high silver and gold grades. We are thrilled with these results and look forward to getting our team back onto the project with a plan to complete a maiden drill program once we wrap up our current work program at Unga."

Oso Negro Details

The Oso Negro district is a historic mining area with multiple zones of outcropping veins. Even though the veins contained some historic workings, they remain undrilled. The company completed a detailed mapping and sampling program on the claims purchased in 2020 and also recently completed a reconnaissance program of stream sediments, mapping and sampling on the newly acquired Angel de Plata 2 claim (Fig. 1) .

The systematic sampling of the main claim has defined drill targets on four veins (Fig. 2):

• Prospecto Vein: Continous channel and representative grab samples over a strike of 360 metres have a weighted average grade of 420 g/t AgEq over an average width of 1.3 metres.
• Tere Vein: Grab samples samples over a strike of 730 metres have a weighted average grade of 172 g/t AgEq over an average width of 1.04 metres. The vein remains open along strike.
• Prospecto Parallel Vein: A new vein parallel to the Prospecto vein has been defined with a strike length of 280 metres. A best representative grab of 393 g/t AgEq was returned over 0.75 metres.
• Santa Rosa Vein: Channel, grab and dump samples define the vein over 190m of strike with a best grab sample of 174 g/t AgEq over 1.9 metres.

On the newly applied claim a 7,200 metre long, north-northwest trending vein system, Fresnos, has been mapped and sampled. The vein is approximately three metres wide and locally expands to a width greater than 70 metres at the intersection with a splay vein. The majority of samples contain very low grades of silver and gold however the vein may represent the shallow levels of an epithermal system that contains higher grades at depth.

On the same new claim, the team discovered a second zone of veins, the Hebilla veins. These veins host many historic mine workings on clay, quartz and sulphide altered structures and the team mapped this east-west trending vein system over an area of 1,800 metres by 1,000 metres. Six of nineteen dump and grab samples collected in this area returned silver equivalent values over 100 g/t AgEq with a highest value of 1,501 g/t AgEq.

Detailed mapping and sampling will be completed on the new claim over the coming months to advance these two new vein zones to drill ready status. The company plans to undertake a maiden drilling program at Oso Negro in late 2021 upon completion of drilling at Unga in Alaska.

Figure 1: Location Map of Oso Negro with new Angel de Plata 2 claim and recently discovered veins shown.

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Figure 2: Detail of Oso Negro vein sample results, with selected channel samples labelled.

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Figure 3: Location map of Oso Negro with nearby deposits and Heliostar projects.

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Table 1: Table of channel and representative grab sample results from Oso Negro. Note: Gold equivalent is calculated using the following formula: gold-equivalent = ((Au_g/t x 48.23) + (Ag_g/t x 0.6431) + (Pb ppm x 0.0019) + (Zn_ppm x 0.0021)) / 48.23. Silver-equivalent = ((Au_g/t x 48.23) + (Ag_g/t x 0.6431) + (Pb_ppm x 0.0019) + (Zn_ppm x 0.0021)) / 0.6431. Metal price assumptions are $1,500 per ounce gold, $20 per ounce silver, $0.85 per pound lead and $0.95 per pound zinc.

General Mexico Exploration Update

The company has completed four holes at the La Lola project and assays results from the final two holes are expected very soon.

Detailed mapping and sampling has been completed at the Cumaro project and results are also expected in the coming weeks.

Heliostar's portfolio of projects in Mexico are earlier stage than our flagship Unga asset but the company believes each project has the potential to host a significant orebody. The work programs completed in early 2021 have advanced each project and we plan to undertake drilling on each project over the next year.

Unga Exploration Update

Drilling continues at a rapid pace at Unga with 26 holes completed to date. Two reverse circulation (RC) drill rigs are at Apollo and one diamond drill rig is in operation at the SH-1 resource. Drilling at Aquila will commence next week.

The company expects to report the first drilling results from the 2021 spring program at Unga in late June/early July.

About Heliostar Metals Ltd.

Heliostar is a well-financed junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico. The company's flagship asset is the 100% controlled Unga Gold Project on Unga and Popof Islands in Alaska. The project hosts an intermediate sulfidation epithermal gold deposit, located within the district-scale property that encompasses 240km² across the two islands. Additional targets on the property include porphyry, high sulphidation and intermediate sulphidation epithermal veins. On Unga Island, priority targets include: the SH-1 and Aquila, both on the Shumagin Trend, the former Apollo-Sitka mine, which was Alaska's first underground gold mine and the Zachary Bay porphyry gold-copper prospect. Gold mineralization at the Centennial Zone is located on neighbouring Popof Island within four kilometres of infrastructure and services at Sand Point.

In Mexico, the company owns 100% of three early-stage epithermal projects in Sonora that are highly prospective for gold and silver. Cumaro forms part of the El Picacho district, while the Oso Negro and La Lola projects are also prospective for epithermal gold-silver mineralization.

Qualified Person

The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., Exploration Manager for the Company. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101.

For additional information please contact:

Charles Funk
Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com

Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Phone: +1 778 357 1313
Email: rob.grey@heliostarmetals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information. This release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "would", "may", "could" or "should" occur. Forward-looking statements in this press release include Heliostar's plans to continue aggressive exploration at Unga in 2021 and its goal of defining a resource in excess of one million ounces, its plan to continue infill drilling to expand to depth where the system remains open, and its belief that the SH-1 prospect has considerable potential for expansion. Although Heliostar believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not a guarantee of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, weather, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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