Q2 2025 Quarter Highlights

• Q2 2025 production of 7,396 Gold Equivalent Ounces (GEOs)
• Q2 2025 sales of 8,556 GEOs
• Consolidated cash costs of $1,413 per GEO sold and consolidated all-in sustaining costs (“AISC”) of $1,541 for Q2 2025
• The Company is on track to achieve its annual sales guidance of 31,000 to 41,000 GEOs, annual cash cost of $1,800-1,900 per GEO sold and AISC of $1,950-2,100 per GEO sold for 2025
• Mine operating earnings of $14.3M in Q2 2025
• Closing the quarter with $29.7M in cash, $51.7 million in working capital and no debt

Heliostar Metals Ltd. (TSX-V: HSTR) (OTCQX: HSTXF) (FSE: RGG1) reported unaudited financial results for the three months ended June 30, 2025, which corresponds to the first quarter of Heliostar’s fiscal reporting year 2025. Results are presented in US dollars, unless stated.

Heliostar CEO, Charles Funk, commented, “Q2 2025 was another strong quarter for Heliostar with the mines continuing to perform as expected, funding our production and resource growth programs, and further strengthening our financial position. Our consolidated margin continues to expand in a strong gold price environment, with the Company reporting an operating margin of 51%. Looking forward, the Company is restarting mining at San Agustin in late 2025 and expects to expand its production profile in Q4 2025 and into 2026. We continue to deliver on our commitment to grow the Company to a mid-tier gold producer.

“The strong balance sheet and operating cash flow allow Heliostar to accelerate our growth plans. At La Colorada, we are drilling additional historical stockpiles with the objective of extending production through 2026 ahead of the planned pit expansion at Veta Madre. At San Agustin, the Company has satisfied all permitting requirements to develop the Corner area, and preparations are ongoing to restart mine operations before the end of the year. This restart is fully funded from cash on the Company’s balance sheet. Further, the Company has committed to an expanded $9.5 million program at Ana Paula in 2025, including a minimum 15,000 metre drilling with the objective of delivering mineral reserves to support a 10-year life of mine in the upcoming feasibility study.

“In the quarter, the Company has been working on a number of technical reports to unlock additional value from our assets. The slightly delayed, updated La Colorada technical report will be completed in the coming weeks. A pre-feasibility study is planned for Cerro Del Gallo this year, and the feasibility study for Ana Paula is continuing to progress.”

Q2 2025 Operational and Financial Highlights

Total gold production of 7,396 gold equivalent ounces (7,262 gold ounces) in Q2 2025. Gold production was realized from mining the Junkyard Stockpile at the La Colorada mine, as well as re-leaching the previously stacked ore at the La Colorada and the San Agustin mines. Consolidated production also benefited from a nominal contribution from residual production from the rinsing of residual leach pads at the El Castillo mine. Production year-to-date 2025 is consistent with the 2025 guidance issued by the Company on February 4, 2025, which remains unchanged.

Total Cash Cost of $1,413 per GEO produced in Q2 2025. The combined YTD cash cost (see “Non-IFRS Measures”) is $1,257 per GEO.

Total AISC of $1,541 per GEO sold in Q2 2025. The consolidated YTD AISC (see “Non-IFRS Measures”) is $1,602 per GEO.

Both Total Cash Costs and AISC are ahead of the 2025 guidance range; however, the Company anticipates costs will increase in the latter half of the year as residual leaching at San Agustin declines ahead of stacking new ore from the Corner area, and particularly due to one-off capital costs incurred to restart primary mining from the Corner area.

Mine Operating Earnings of $14.3 million in Q2 2025. The Company continued to report strong results in Q2 2025, with continued improvements in operating performance, as well as benefiting from selling into a rising gold market. Mine operating earnings YTD 2025 are $26.1 million.

Net income attributable to shareholders of $1.9 million, or $0.01 per share, for Q2 2025. Net income of $1.9 million ($0.01 per share) for Q2 2025 compared to a net loss attributable to shareholders of $2.3 million ($0.01 loss per share) for Q2 2024.

Strengthened financial position and liquidity. On June 30, 2025, the Company had cash of $29.7 million and working capital (defined as current assets less current liabilities) of $51.7 million, with an increase in working capital of $10.1 million over the prior quarter. As of June 30, 2025, the Company had no debt.

Achieved stable production at La Colorada mine. The mining of new ore restarted at the Junkyard Stockpile in January 2025. Production from the Junkyard Stockpile has increased steadily during Q2 2025, with operating costs as expected, grade in line with the reserve model and ore tonnes reconciling slightly higher than expected. Production YTD 2025 was 7,850 GEOs (7,572 gold ounces). Ore feed from the Junkyard Stockpile is planned to continue into 2026, with other historical stockpiles identified to provide additional material to be crushed and stacked on the leach pad thereafter. Further, subject to receiving certain regulatory approvals, the Company intends to expand the Veta Madre pit to exploit 43k ounces of gold reserves.

Restart of mining at San Agustin. The Company was able to complete the regulatory requirements to enable the approval to restart mining at San Agustin from the Corner area. Preparation work to commence mining is underway, and the Company anticipates production from the Corner starting in Q4 2025 and continuing into 2027. Recoverable reserves at the Corner are estimated at 44.5k ounces of gold.

Continuing to advance the development of the flagship Ana Paula Project. In July 2025, the Company commenced an expanded $9.5 million exploration and development program, including a minimum 15,000 metre drill program at Ana Paula Project. The program has the objective of upgrading existing inferred mineral resources to demonstrate more than a 10-year mine life in the upcoming feasibility study. Technical and regulatory programs are being advanced in parallel and will continue through 2026 to complete a bankable feasibility study.

Preparation of updated technical reports. The Company is concluding an updated technical report for La Colorada and is planning to complete a prefeasibility study (“PFS”) for the Cerro del Gallo Project in 2025 and continues to advance the Ana Paula Project feasibility study.

Operational and Financial Results

Results are reported for the three months ended June 30, 2025 (“Q2 2025”), which corresponds to the first quarter of Heliostar’s fiscal reporting year 2026.

A summary of the Company’s consolidated operational and financial results for the reporting period is presented below:

1. Non-IFRS measure. Refer to the “Non-IFRS Measures” section of this news release.

Operational Review

Consolidated Production and Costs

Q2 2025 was the Company’s third reporting period with metals production. The Company had no production in Q2 2024.

Gold production of 7,396 GEOs (7,262 gold ounces) for Q2 2025 was reported from the La Colorada mine and the San Agustin mine, with a nominal amount reported from the El Castillo mine, which has commenced reclamation. The combined YTD 2025 production of 16,477 GEOs of gold (16,039 gold ounces) is consistent with the 2025 guidance issued by the Company.

The combined cash costs for the producing operations were $1,413 per GEO sold, and the consolidated AISC was $1,541 per GEO sold. The combined cash costs and AISC are currently ahead of the 2025 guidance issued by the Company, and full-year results are expected to be within the guidance range.

La Colorada Mine

Operating results for Q2 2025 were as follows:

In January 2025, mining of new ore restarted at the Junkyard Stockpile by the Company, alongside re-leach activities started by the previous operator.

During the reporting period, the La Colorada mine produced 3,538 GEOs (3,464 gold ounces). Total revenues of $12.0 million were reported from sales of 3,747 GEOs. A series of actions were implemented at La Colorada to improve re-leaching performance, with gold production from re-leaching exceeding plans. Production from the Junkyard Stockpile has increased steadily during Q2 2025 and continues to meet all expected parameters.

For the reporting period, cash costs were $1,296 per GEO ($1,101 per GEO YTD 2025), and AISC was $1,425 per GEO ($1,232 per GEO YTD 2025), currently an improvement on 2025 guidance.

The Company plans to continue mining of the Junkyard Stockpile through 2025 and into 2026, with other historical stockpiles identified to provide additional, continued feed to the crushers thereafter. Further, subject to receiving certain regulatory approvals, the Company intends to expand the Veta Madre pit to exploit 43k ounces of gold reserve, which will be timed sequentially with the ore feeds from the historical stockpiles.

San Agustin Mine

Operating results for Q2 2025 were as follows:

In September 2024, the previous owners of San Agustin placed the mine under care and maintenance, with metals production continuing from the re-leaching of residual leach pads.

During the reporting period, the San Agustin mine produced 3,622 GEOs (3,564 gold ounces). Total revenues of $14.9 million were reported from sales of 4,660 GEOs. A series of actions were implemented at San Agustin to improve re-leaching performance, with gold production from re-leaching exceeding 2025 guidance.

For the reporting period, cash costs were $1,529 per GEO ($1,407 per GEO YTD 2025), and the consolidated AISC was $1,597 per GEO ($1,485 per GEO YTD 2025), which is currently an improvement on 2025 guidance.

The Company has completed regulatory requirements to enable the restart of mining at San Agustin from the Corner area (see News Release dated July 22, 2025). Work to commence mining is underway, including administrative programs and small ancillary capital projects, and the Company anticipates production from the Corner starting in Q4 2025 and continuing into 2027. Recoverable reserves at the Corner are estimated at 44.5k ounces of gold.

El Castillo Mine

Operating results for Q2 2025 were as follows:

In late 2022, the previous owners of El Castillo placed the mine under care and maintenance, and the mine is now considered in reclamation. Some nominal metal production has been possible from the rinsing of residual heap leach pad during reclamation activities.

During the reporting period, the El Castillo mine produced 236 GEOs (234 gold ounces). Total revenues of $0.5 million were reported from sales of 150 GEOs.

Reclamation expenditures at the El Castillo mine for the three months ended June 30, 2025, were $nil; however, $1.1 million was incurred in indirect reclamation expenditures for maintenance of land, permits and general expenses required to maintain the site in good standing. Further reclamation work will continue to be performed in 2025.

Ana Paula Project

Development and Exploration expenditures at the flagship Ana Paula Project were $0.8 million in Q2 2025 ($1.2 million in Q2 2024).

During Q2 2025, the Company initiated a $9.5 million exploration and development budget, including a minimum 15,000 metre drilling program at Ana Paula with the objective of delivering mineral reserves to support a 10-year life of mine. On August 27, 2025, the Company announced initial results from the first resource conversion holes, including 30.2 metres at 6.29 grams per tonne gold.

During Q2 2025, the Company completed trade-off studies and determined a preferred process flowsheet for the project. Technical and regulatory programs are being advanced and will continue through 2026 to complete a bankable feasibility study.

Cerro del Gallo Project

The process of advancing the additional development and engineering required at the Cerro del Gallo Project is ongoing.

During Q2 2025, the Company began a strategic review of the Project and initiated technical programs with the objective of identifying and evaluating the next development steps.

During Q2 2025, the Company commissioned the preparation of a prefeasibility study for the Cerro del Gallo Project. The study is planned to be completed in 2025. All major environmental and other permits will need to be obtained before an investment decision can be considered by the Company.

Funding Overview

In the three months ended June 30, 2025, 5,254,548 warrants and 422,082 stock options were exercised for total proceeds of $1.3 million and 906,249 RSUs were converted.

As of June 30, 2025, the Company had no debt.

Statement of Qualified Persons

Gregg Bush, P.Eng., Mike Gingles, and Stewart Harris, P. Geo., Qualified Persons, as such term is defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects, have reviewed the scientific and technical information that forms the basis for this news release and have approved the disclosure herein. Mr. Bush is employed as Chief Operating Officer of the Company, Mr. Gingles is employed as Vice President of Corporate Development, and Mr. Harris is employed as Exploration Manager.

About Heliostar Metals Ltd.

Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on increasing production and developing new resources at the La Colorada and San Agustin mines in Mexico, and on developing the 100% owned Ana Paula Project in Guerrero, Mexico.