Heliostar Metals Limited (TSX-V: HSTR) (OTCQX: HSTXF) (FSE: RGG1) is pleased to announce that, further to its news releases dated October 4, 2021, October 6, 2021, and October 19, 2021, it has closed the second and final tranche of its non-brokered private placement offering. 3,876,607 units of the Company were issued in the second tranche at a price of $0.70 per Unit for gross proceeds of $2,713,624.90. Combined with the first tranche, the Company issued a total of 5,734,072 Units for aggregate gross proceeds of $4,013,850.40.

Heliostar CEO Charles Funk commented: “Closing the offering for four million dollars puts Heliostar in a strong financial position. The funds raised will go directly to the company’s field programs in Mexico and Alaska. In Mexico the company is preparing for a maiden 2,500 to 3,000 metre drill program at Cumaro. This drill program will follow up on surface results highlighted by 5 metres at 10.3 gram per tonne (g/t) gold and 168 g/t silver at the Verde discovery. The new discoveries we have made at both Unga in Alaska and Cumaro in Mexico have set the company up for a catalyst rich end to this year and an aggressive 2022.”

About the Private Placement

Each Unit consists of one common share in the capital of the Company and one half of one non-transferable common share purchase warrant. Each Warrant is exercisable for one additional Share at an exercise price of $1.20 for a period of 24 months following the Closing Date.

In the second tranche of the Offering, the Company paid finders fees to four qualified finders, consisting of an aggregate amount of $139,387,54 in cash and 199,129 non-transferable broker warrants. Each Broker Warrant is exercisable into one Share at an exercise price of $1.20 for a period of 24 months following the Closing Date.

The Shares, any Warrant Shares issuable upon exercise of any of the Warrants and any Broker Warrant Shares issuable upon exercise of any of the Broker Warrants are subject to a four month and one-day restricted resale period expiring March 6, 2022 in accordance with the policies of the TSX Venture Exchange and securities laws applicable in Canada. In addition to

Canadian resale restrictions, any of the securities sold to investors from other jurisdictions may be subject to additional resale restrictions, including those of the federal laws of the United States of America and any State or territory thereof.

The Company intends to use the net proceeds from the Offering to advance its Alaskan and Mexican projects, focusing primarily on the proposed Cumaro drill program in Q4, 2021, as well as for working capital and general corporate purposes.

Heliosphere Management Ltd., a company wholly owned and controlled by Charles Funk, an officer and a director, purchased 42,858 Units in the second tranche of the Offering, and Sam Anderson, an officer of the Company, purchased 14,286 Units in the second tranche of the Offering and the Offering is therefore considered to be a “related party transaction”, as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions and Policy 5.9 of the TSX Venture Exchange, which require that the Company, in the absence of exemptions, obtain a formal valuation for, and minority shareholder approval of, the related party transaction. However, the Offering is exempt: (i) from the formal valuation requirement of MI 61-101 (and Policy 5.9) pursuant to the exemption contained in section 5.5(b) of MI 61-101 as none of the Company’s securities are listed on any of the markets specified in section 5.5(b) of MI 61-101, and (ii) from the shareholder approval requirement of MI 61-101 (and Policy 5.9) pursuant to the exemption contained in section 5.7(1)(a) of MI 61-101 because the fair market value of the securities sold to related parties in the Offering did not exceed 25% of the Company’s market capitalization.

None of the securities to be issued in the Offering have been or will be registered under the United States Securities Act of 1933, as amended (the “1933 Act“), and none may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act.

About Heliostar Metals Ltd.

Heliostar is a 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.