Heliostar Presents Record Q1 2026 Financial and Operating Results

Q1 2026 Highlights:

• Produced a record 11,743 ounces of gold and 43,798 ounces of silver
• Cash cost of $1,602 per ounce of gold sold and all-in sustaining costs ("AISC") of $1,996 per ounce of gold sold, ahead of full year guidance range
• Average gold sale price of $4,850 per ounce
• Record mine operating earnings of $30.9 million; net income of $14.0 million; $4.6 million of exploration expenses and $4.8 million advancing Ana Paula
• $38.7 million in cash plus $10.0 million sales receivables, due to sales delayed at the beginning of the war in Iran to achieve a higher sale price
• $21.0 million increase in working capital quarter over quarter to a record $70.0 million and no debt
• First gold pour from the restart of mining at San Agustin in late January

Heliostar Metals Ltd. (TSXV: HSTR,OTC:HSTXF) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") reported unaudited financial results for the three months ended March 31, 2026 ("Q1"). Results are presented in US dollars, unless otherwise stated.

Heliostar CEO, Charles Funk, commented, "In Q1, Heliostar had record gold production, record revenue, record mine operating earnings and record working capital. We are taking advantage of the strong gold price environment to maximize cash generation from our production assets and using the cash flow to bring Ana Paula toward production. Execution of our strategy is on track as we have continued to build our balance sheet while aggressively drilling across the portfolio. This allows us to grow the business on two fronts - adding to our already substantial resource base and establishing the financial platform to build Ana Paula without equity dilution.

"Within the quarter, we ramped up the restart of mining at San Agustin, which contributed for slightly over two months and sets a platform for further production growth in Q2. We also acquired the Goldstrike project in Utah, which fits our profile of finding accretive acquisition opportunities that fly under the radar. We continue a clear strategy of production growth on shareholder first terms and build towards our corporate goal of being a 500,000 ounce per year producer by the end of the decade."

Q1 Results Conference Call

Heliostar will host a conference call on Wednesday, May 13, 2026, at 1:00 PM Eastern Time/10:00 AM Pacific Time. The call will provide a corporate update following the release of the first financial and operating results for 2026.

Please use the link here to register for the call or visit the Company website at www.heliostarmetals.com.

Q1 Operational and Financial Highlights

Record total gold production of 11,743 gold ounces and 43,798 ounces of silver produced. A total of 9,980 gold ounces and 10,610 silver ounces were sold in Q1. The Company delayed the sale of metals near quarter-end to manage a pullback in prices resulting from the commencement of the war in Iran. This included 2,207 ounces of gold sold in the last few days of the quarter for which payment of $10.0 million was received subsequent to quarter-end. The Company is on track to achieve production guidance of 50,000-55,000 gold ounces as announced on January 13, 2026.

Total cash cost of $1,602 and AISC of $1,996 per ounce of gold sold in Q1 2026 (see "Non-IFRS Measures"). AISC decreased compared to the previous quarter, due to the completion of capital expenditures at San Agustin to bring that mine back into production and by-product credits from inventory of gold-bearing carbon fines produced through 2025 and sold in the quarter. Costs in Q1 were below the guidance range of $1,775-$1,875 per gold ounce for cash costs and $2,150-$2,250 per gold ounce for AISC as announced on January 13, 2026.

Mine operating earnings of $30.9 million for $21.9 million after taxes. Operating margin in the quarter benefited from a rising gold market and decreased per ounce costs, slightly offset by an increase in leach pad inventory build at San Agustin due to the restart of stacking fresh ore on the pad.

Net income of $14.1 million, or $0.05 per share or $0.05 per share, on a fully diluted basis. This compares to net income of $9.3 million ($0.04 per share) for the previous quarter. The increase was due to stronger mine operating earnings driven by a rising gold price, lower operating unit costs and positive movement in foreign exchange rates.

Strengthened financial position and liquidity: On March 31, 2026, the Company had cash of $38.7 million and working capital of $70.0 million (compared to $49.0 million in working capital at the end of the previous quarter). Working capital is defined as current assets less current liabilities and includes $10.0 million in sales receivable for gold sold near the end of the quarter.

Maintained stable production at La Colorada mine. Crusher feed from the stockpiles continued through until early March, with the mine having now transitioned to production from injection and residual leaching. On the back of the early success of the injection leaching program, the Company has added a second injection leaching system, allowing the operation to recover additional ounces from material previously stacked on the leach pad. The Company intends to expand the Veta Madre pit to exploit 48k ounces of contained gold reserves, with waste stripping for the pit pushback on track to start in Q3 2026. Results of the recently concluded drill program at Veta Madre Plus will be incorporated into a modified resource and pit design.

Successful ramp-up at San Agustin. Through Q1, the Company focused on ramping up primary mining, crushing and stacking activities from the restarted San Agustin Mine. The first gold from the new ore stacked on the leach pad was poured in late January 2026. The operation has since successfully ramped up to steady-state production, and gold production from the San Agustin mine will be a major cash flow contributor for Heliostar through 2026 and beyond. Reserves at the Corner are estimated at 68k ounces of gold. In Q1, drill results from step-outs up to 200 metres from the edge of the current pit were reported. These showed consistent mineralization with similar grade, thickness and depth as the ore currently being profitably mined by the Company.

Infill and Expansion Zone exploration drilling success at Ana Paula. The infill drill program continued to encounter wide zones of high-grade mineralization in areas currently classified as inferred resources at the Ana Paula deposit, including 69 metres of 10.1 grams per tonne ("g/t") gold as per the April 23, 2026, press release (Heliostar Drills 69 metres Grading 10.1 g/t Gold in the High Grade Panel at Ana Paula). These results will be incorporated into an updated resource that will support the upcoming Feasibility Study. In addition, the Company reported results from step-down drilling into the Expansion Zone, with results of up to 101 metres of 5.34 g/t gold as per the April 9, 2026, press release (Heliostar Drills 101 metres Grading 5.34 g/t Gold in the Ana Paula Expansion Zone). Technical and regulatory programs are being advanced in parallel and will continue through 2026 to complete a bankable feasibility study in Q2 2027.

Goldstrike project in Utah acquired. Heliostar acquired the Goldstrike project in Utah, USA, from Liberty Gold Corp. for total consideration of $72.5 million, paid over five years, of which $10.0 million was paid, and 1,593,213 shares were issued at closing on April 24, 2026. The project is located in the Great Basin, and hosts indicated resources of 975koz at 0.48 g/t gold in 65.8 million tonnes ("Mt") in a Carlin-style system as per the March 24, 2026, press release (Heliostar Introduces Goldstrike Project and Updated Mineral Resource) The Company sees significant exploration potential at depth since most of the drilling only extends to 200 metres below surface. In addition, the property hosts critical mineral potential in the Antimony Ridge prospect. This includes a past producing antimony mine and high-grade grab samples up to 5.7% antimony.

Operational and Financial Results

Results are reported for the three months ended March 31, 2026 (noted as Q1) and for the three months ended March 31, 2025, unless otherwise specified.¹

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

2. Non-IFRS measure. Refer to the "Non-IFRS Measures" section of this news release.

Consolidated Production and Costs

Production of 11,743 gold ounces in Q1 was reported from the La Colorada and the San Agustin mines. The Company is on track to achieve its unchanged full year production guidance of 50,000-55,000 ounces of gold and 290,000-320,000 ounces of silver.

The consolidated cash costs for the producing operations for Q1 were $1,602 per gold ounce sold, and the consolidated AISC was $1,996 per gold ounce sold. Costs in Q1 were below the full-year guidance range.

Cash cost and AISC reductions from the previous quarter ended December 31, 2025, are due to the completion of capital expenditures at San Agustin to bring that mine back into production and by-product credits from inventory of gold-bearing carbon fines produced through 2025 and sold in the quarter, including carbon fines from El Castillo.

La Colorada Mine

Operating results for Q1 2026 were as follows:

During Q1, the La Colorada mine produced 6,890 gold ounces and 33,480 ounces of silver with sales of 5,562 gold ounces and 8,413 silver ounces. Gold sales at the end of the quarter were intentionally delayed to avoid selling during a brief pullback in global precious metals prices. These ounces have since been sold.

In Q1, cash costs were $1,601 per gold ounce sold, and AISC was $1,703 per gold ounce sold. The lower cash costs and AISC compared to the previous quarter ended December 31, 2025, were driven by the increase in ounces sold and the cessation of crushing activities partway through the quarter as stockpile material was exhausted. The by-product carbon fines from 2025 were also sold in the quarter, further reducing cash costs and AISC.

Mining of the currently defined surface stockpiles was completed in Q1 2026. Production through the remainder of 2026 will come from pressure injection technology to access partially leached material within the pad and residual leaching of recently stacked ore. The Company has been successfully utilizing injection leaching technology since November 2025 and has recently added a second injection system to continue to drive production.

The Company is on track to start capitalized waste stripping activities to expand the Veta Madre pit in the second half of 2026. This will enable Heliostar to exploit the 48k ounces of gold reserve, which will drive 2027 production. Engineering of the Veta Madre Plus expanded pit is ongoing, informed by the recent drill campaign to better define additional mineralization outside of the current reserve pit design. The Company remains on track to bring ore from Veta Madre into production starting in H1 2027 and continuing through into 2028.

San Agustin Mine

Operating results for Q1 2026 were as follows:

In Q1, San Agustin produced 4,853 ounces of gold and 10,318 ounces of silver with sales of 4,418 gold ounces and 2,197 silver ounces.

For the first quarter of 2026, cash costs were $1,874 per gold ounce sold, and AISC was $2,116 per gold ounce sold. The decrease compared to the previous quarter ended December 31, 2025, was the result of the operation having completed the capital spend to bring the mine back into production in Q4 and increasing gold sales through achieving steady state production in Q1. By-product inventory of carbon fines from 2025 was also sold in the quarter, further reducing cash cost and AISC.

During the quarter, the mine successfully ramped up production from mining the Corner area reserve. The operation poured the first gold from new ore stacked on the leach pad in late January, with steady state production achieved mid-way through the quarter. Mining of the Corner area reserve will continue through 2026 and into 2027. Reserves at the Corner are estimated at 68k ounces of gold.

A 15,000-18,000 metre drill campaign at San Agustin is ongoing, focused on defining additional oxide resources at the margins of the existing open pit. Initial results from this program included 35.1 metre grading 0.40 g/t AuEq (0.39 g/t Au + 7.0 g/t Ag) and 19.8 metre grading 0.60 g/t AuEq (0.52 g/t Au + 46 g/t Ag) both starting from 1.5m deep as per the March 17, 2026 press release (Heliostar Drills Multiple Gold Intercepts over 200 Metres From Pit Edge at San Agustin). These results show similar grades, thicknesses and depths to the material currently being profitably mined at the operation. Additional assays expected to be released throughout the year. Once defined, this material will be incorporated into the mine plan to extend the mine life.

Ana Paula Project

Development and exploration expenditures at the flagship Ana Paula Project were $4.8 million in Q1, primarily relating to ongoing drilling and study work to support the upcoming feasibility study.

During Q1, the Company completed a 25,000-metre drilling program at Ana Paula with the objective of delivering mineral reserves that will support a 10-year life-of-mine in the Feasibility Study planned to be released in the first half of 2027. The infill drill program continues to refine the inferred resource, encountering a broad width of high-grade mineralization, including 68 metres of 10.1 g/t gold. These results will be incorporated into the updated resource that will form the basis of the upcoming Feasibility Study.

An additional 10,000-metre program is underway targeting the Expansion Zone beneath the High Grade Panel. The zone continues to demonstrate high-grade mineralization continuing at depth, including 101 metres of 5.34 g/t gold, with ~70 metres of that interval extending below the deepest designed stope in the November PEA. Results from additional holes are pending from this area and are expected to be released in the coming months.

In parallel, work on the Feasibility Study is ongoing. This includes advanced metallurgical testing, updating the resource to include the recent drilling, detailed process plant design and mine plan optimization. Heliostar is also rapidly advancing permitting and is on track to submit the permit modification for the underground mine and associated surface infrastructure in mid-2026. The Company intends to provide an update on the progress of the Feasibility Study work in Q3, ahead of its planned publication in Q2 2027.

Cerro del Gallo Project

Following the publication of the pre-feasibility study in late 2025, social engagement and desktop study work have continued at Cerro del Gallo. The work program for the project for 2026 is focused on social engagement with the local stakeholders, collecting additional metallurgical samples through a small drill program and unlocking the full potential of the land-package-constrained reserve.

Goldstrike Project

The Company announced the acquisition of the Goldstrike project from Liberty Gold Corp. on March 23, 2026, and subsequently closed the acquisition on April 24, 2026. The project hosts indicated gold resources of 975koz at 0.48 g/t in 65.8Mt plus inferred resources of 90koz at 0.36 g/t in 8.9Mt, as reported by the Company on March 24, 2026.

The acquisition provides geographic diversification, adds another high-quality development project to the Company's pipeline and adds critical minerals exposure through the Antimony Ridge prospect on the east end of the property. The Company will evaluate potential strategic options for the Goldstrike Project, including, but not limited to, sequencing development within the Company's existing growth project pipeline and the use of special purpose vehicles to separate gold and critical minerals value streams. Future development work will focus on resource expansion, investigating the full potential of Antimony Ridge, and confirming the processing and infrastructure plans.

Funding Overview

In the three months ended March 31, 2026, 11.4 million warrants and 0.5 million stock options were exercised for total proceeds of $2.6 million and 50,000 RSUs vested and were settled in shares.

As of March 31, 2026, the Company had no debt.

Non-IFRS Measures. This news release refers to certain financial measures, such as all-in-sustaining costs, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and, accordingly, may not be comparable to such measures as reported by other companies. These measures have been derived from the Company's financial statements because the Company believes that they are of assistance in understanding the results of operations and its financial position. Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the Company's MD&A for fiscal 2025, available on SEDAR+.

Cash costs. The Company uses cash costs per gold equivalent ounce sold to monitor its operating performance internally. The most directly comparable measure prepared in accordance with IFRS is cost of sales. The Company believes this measure provides investors and analysts with useful information about its underlying cash costs of operations. The Company also believes it is a relevant metric used to understand its operating profitability and ability to generate cash flow. Cash costs are measures developed by metals companies in an effort to provide a comparable standard; however, there can be no assurance that the Company's reporting of these non-GAAP financial measures is similar to those reported by other mining companies. They are widely reported in the metals mining industry as a benchmark for performance, but do not have a standardized meaning and are disclosed in addition to IFRS measures. Cash costs include production costs, refinery and transportation costs and extraordinary mining duty. Cash costs exclude non-cash depreciation and depletion and site share-based compensation. Production costs include mining, crushing, processing, and direct overhead at the operation sites.

AISC. AISC more fully defines the total costs associated with producing precious metals. The AISC is calculated based on guidelines published by the World Gold Council (WGC), which were first issued in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance Note in 2018. Other companies may calculate this measure differently because of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus growth capital. Note that in respect of AISC metrics within the technical reports, because such economics are disclosed at the project level, corporate general and administrative expenses were not included in the AISC calculations. AISC per GEO includes mining, processing, direct overhead, reclamation and sustaining capital.

Statement of Qualified Persons

Gregg Bush, P.Eng., and Mike Gingles, 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, and Mr. Gingles is employed as Vice President of Corporate Development.

About Heliostar Metals Ltd.

Heliostar is a growing gold producer with a goal to produce 500,000 ounces per year by the end of the decade. The cash flow from the Company's La Colorada Mine in Sonora and the San Agustin Mine in Durango supports the development of its 100% owned pipeline of growth projects in Mexico and the USA. These include the flagship Ana Paula development project in Guerrero, the Cerro del Gallo project in Guanajuato, and the Goldstrike project in Utah.

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.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the Company's goal of becoming a mid-tier producer, the mine performance, production plans and the free cashflow generation from our operating mines, all profits generated from operations to be reinvested directly into our Companies growth and this reinvestment will focus on expanding production and growing resources across our portfolio.

Forward-looking statements and forward-looking information relating to the terms and completion of the Facility, any future mineral production, liquidity, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect the Company's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in the Company's public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

¹ During the prior fiscal period, the Company changed its financial year-end from March 31 to December 31. As a result, the Company's most recent consolidated financial statements were prepared for the nine-month period ended December 31, 2025. The condensed consolidated interim financial statements for the three months ended March 31, 2026, represent the first interim reporting period under the Company's new December 31 fiscal year end. Accordingly, this is the first time the Company is presenting comparative financial information for the three-month period ended March 31, 2025, and the comparative information differs from that presented in prior interim financial statements and may not be directly comparable to previously reported quarterly results.

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