Heliostar Reports 52.4m Grading 5.84 g/t Gold from the High Grade Panel and Continues to Build Out the Expansion Zone at Ana Paula

Heliostar reports strong Ana Paula drill results and signs a $200,000 marketing deal.

What the company is saying

Heliostar Metals Ltd. (TSX:HSTR, OTCQX:HSTXF, FSE:RGG1) is emphasizing the completion of its 2025–2026 infill and exploration drilling at the 100%-owned Ana Paula project in Guerrero, Mexico, with 122 holes and 35,121 metres drilled. The company frames these results as validating the continuity of high-grade mineralization in the High Grade Panel and demonstrating growth potential in the Expansion Zone, highlighting intercepts such as 3.4 metres at 10.64 g/t gold and 52.35 metres at 5.83 g/t gold. CEO Charles Funk asserts confidence in achieving a Feasibility Study target of a 10-year mine life averaging 100,000 ounces of annual production, though this remains a forward-looking statement. The announcement also details a promotional agreement with Native Ads Inc. for up to twelve months, costing up to $200,000, with $100,000 paid in advance, and stresses that Native Ads is an arm's-length party with no securities interest. The company notes that only a portion of recent exploration drilling will be included in the upcoming Feasibility Study, with additional results offering potential for mine life extension. Stewart Harris, Exploration Manager, is the Qualified Person who reviewed and approved the technical disclosure. The tone is confident, focusing on operational progress and future upside.

What the data suggests

The company has completed 122 drill holes totaling 35,121 metres at Ana Paula, with approximately 25,000 metres targeting inferred mineralization for reserve upgrades and 10,000 metres exploring down-plunge extensions in the Expansion Zone. Drill highlights include AP-26-314A intersecting 3.4 metres at 10.64 g/t gold, AP-26-409 returning 52.35 metres at 5.83 g/t gold (including 12.55 metres at 17.75 g/t), and AP-26-410 with 24.75 metres at 5.14 g/t gold. Hole AP-26-412 delivered 18.85 metres at 2.05 g/t gold, including 6.4 metres at 5.19 g/t and 6.7 metres at 3.07 g/t. These results confirm high-grade continuity in the High Grade Panel and expansion potential in the Expansion Zone, but true widths are unknown and no new resource or reserve estimate is provided. The company reiterates a target of 100,000 ounces of annual production over 10 years, but this is not yet supported by a completed Feasibility Study. On the marketing side, Heliostar has committed up to $200,000 to Native Ads Inc., with $100,000 paid in advance, for a range of digital media and promotional services over up to twelve months. All material terms of the marketing agreement are disclosed, including the ability to renew or terminate at any time without penalty. No financial performance data, cash position, or period-over-period comparison is provided.

Analysis

The announcement provides detailed and credible operational progress, including the completion of 122 drill holes (35,121 metres) and specific high-grade gold intercepts at the Ana Paula project. These are realised, measurable achievements and are proportionately described. However, the most prominent forward-looking claim is the company's confidence in achieving a 10-year mine life averaging 100,000 ounces of annual production, which is not yet supported by a completed Feasibility Study or reserve statement. The language around 'potential to grow materially' and 'chase gold deeper' is aspirational and not yet substantiated by resource estimates or economic analysis. The marketing spend is disclosed transparently and is not material enough to trigger a capital intensity flag. Overall, the narrative is somewhat inflated by forward-looking statements about mine life and production, but the operational data is robust and the hype is moderate, not excessive.

Risk flags

• ●The company's production and mine life targets remain forward-looking and are not yet underpinned by a completed Feasibility Study or NI 43-101 compliant reserves, introducing uncertainty about actual future output and project economics.
• ●True widths of reported intercepts are unknown, which may affect the interpretation of grade and continuity, and could impact future resource or reserve estimates.
• ●Only a portion of the recent exploration drilling will be incorporated into the upcoming Feasibility Study, meaning that some positive results may not translate into near-term value or resource upgrades.
• ●The $200,000 marketing spend is a non-trivial capital outlay for a junior company, and while terms are transparent, there is no guarantee that increased investor awareness will translate into improved market valuation or access to capital.
• ●The announcement does not provide any financial statements, cash balance, or cost data, limiting the ability to assess the company's financial health or runway for continued exploration and development.

Bottom line

Heliostar Metals has delivered detailed and positive drill results from Ana Paula, confirming high-grade gold mineralization and expansion potential, but the economic impact remains unquantified until the Feasibility Study is released. The company's stated target of a 10-year, 100,000 ounce per year mine is still aspirational, as no new reserve or resource figures are provided. The $200,000 marketing agreement with Native Ads Inc. is fully disclosed and signals a push for greater investor visibility, but does not affect project fundamentals. Investors should focus on the upcoming Feasibility Study as the next material catalyst, which will determine whether current drill results translate into reserves and economic value. Until then, the story is one of technical progress and future potential rather than immediate value realisation. The most important takeaway is that while operational momentum is strong, investment decisions should await the Feasibility Study for confirmation of scale and economics.

Announcement summary

(TSX:HSTR) (OTCQX:HSTXF) (FSE:RGG1) Heliostar Metals Ltd. announced additional drill results from its 100% owned Ana Paula project in Guerrero, Mexico. The assays reported are from both the infill drill program on the High Grade Panel and down-dip exploration drilling at the Expansion Zone. CEO Charles Funk stated that the conversion drilling program at Ana Paula has been completed and will inform the upcoming Feasibility Study. The company has completed a total of 122 holes and 35,121 metres of drilling at the deposit as part of the 2025-2026 program. Approximately 25,000 metres of drilling targeted inferred mineralization in the PEA mine plan to upgrade these areas for reserve estimates in the Feasibility Study. Around 10,000 metres were drilled for down-plunge extensions in the Expansion Zone beyond the PEA mine plan. The exploration drilling program is ongoing, but the focus has shifted to infrastructure-related condemnation and geotechnical drilling in the second half of 2026. Drill holes AP-26-405, AP-26-407, and AP-26-409 were drilled as resource conversion holes in the High Grade Panel, confirming continuity of high-grade mineralization and supporting conversion of inferred mineralization to higher-confidence categories for potential reserve inclusion. In the Expansion Zone, hole AP-26-314A returned 3.4 metres grading 10.64 g/t gold, located 45 metres from the nearest intercept at that elevation and 100 metres southwest of AP-25-374 (101.0 metres grading 5.43 g/t gold). Hole AP-26-412 returned 18.85 metres grading 2.05 g/t gold, including 6.4 metres grading 5.19 g/t gold from 565.3 metres and 6.7 metres grading 3.07 g/t gold from 639.0 metres. Hole AP-26-409 intersected 52.35 metres grading 5.83 g/t gold, including 12.55 metres grading 17.75 g/t gold. Hole AP-26-410 intersected 24.75 metres grading 5.14 g/t gold, including 8.6 metres grading 11.28 g/t gold. The company remains confident in achieving its target for the Feasibility Study of an initial 10-year mine life averaging 100,000 ounces of annual production. Only a portion of the recent exploration drilling is expected to be included in the Feasibility Study, with other results representing potential for mine life extension. Stewart Harris, P.Geo., Exploration Manager, is the Qualified Person who reviewed and approved the technical information. Heliostar also announced an agreement with Native Ads Inc. to provide investor awareness and promotional services for a term of up to twelve months, at a total cost of up to $200,000, including setup costs, content development, management services, search engine marketing, native ad placement, display ad placement, content distribution, and content placements. The company will pay $100,000 in advance for these services. The agreement can be renewed or terminated at any time with no penalty. Native Ads and its principal, Jon Malach, are arm's-length parties and have no interest in the company or its securities.

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