HELIOSTAR (Gold Mining)

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OCTOBER 2025

CANADA: Listed on the TORONTO STOCK EXCHANGE (TSE).Symbol: HSTR

US: Listed on the OTCQX. Symbol: HSTFX

Since the start of 2024, the price of gold has risen over 100%, from $ 2,063 to $4,381. Heliostar has risen from $ 0.30 to $ 1.90, up 533% in the same period!

This is an example of how, in a major gold bull market, which we are in now, quality gold and silver stocks (and in its manic phase, all precious metal stocks) will far outperform gold.

Eric Sprott is a Canadian billionaire, who founded the Sprott fund (NYSE/TSX: SII) with Assets Under Management (AUM) of US$ 40 billion as at June 30, 2025, which primarily focuses on investing in precious and base metals

Sprott personally owns 14% of Heliostar. Franklin Templeton Investments ($ 1.64 trillion in assets) owns 11% of the company.

Added to the fact that gold has been trading at all-time highs in recent weeks (it reached US$ 3,700 this month, up 43% from a year ago), mining stocks are attracting a lot of investor interest

THE COMPANY

Heliostar is a mining company, based in Vancouver, with five gold assets in Mexico. Two are currently producing moderate cashflows, one is permitted and two more are planned to go into production over time. Heliostar seeks to become a mid-tier producer over time, looking to produce 500,000 ounces of gold per year. It projects hitting this target by 2030.

The company has a market capitalisation of C$ 451 million, with 250 million shares outstanding.

THE ASSETS

The company has been working on the Ana Paula gold deposit, which they purchased for US$ 10 million in 2023. The project has had $ 100 million invested into it by previous owners historically (as gold goes through boom-and-bust cycles, projects can be acquired as sharp discounts when the price is low).

Ana Paula lies in the Guerrero Gold belt, halfway between Mexico City and Acapulco. The area has a number of multimillion ounce gold deposits in close proximity to Ana Paula. Torex Gold, the largest gold producer in Mexico in 2024, produced 452,523 ounces of gold from its ELG complex and Equinox Gold expects to produce 170369 ounces in 2024 at Los Filos (see chart below).

Ana Paula (covering 56,334 hectares) has a high-grade underground resource, with a Measured and Indicated (M&I) gold resource of 710,920 ounces of gold at an average grade of 6.6 grams/tonne (g/t). It also has an Inferred resource of 447,512 ounces of gold @ 4.24 g/t.

Significant drill holes include 242 meters @ 9.06 g/t; 129.2 m @ 6.0 g/t; 90.5 m @ 7.5 g/t and 87.8 m @ 16.0 g/t.

A 15,000 meter drill program commenced in July 2025 to expand the underground resources and a Feasibility Study is in progress. In its presentation, the company aims to grow the shallow part of the deposit into the 1.5-2.0 million ounce range.

The company signed an agreement in July 2024 to acquire additional assets from Argonaut Gold. These include the San Antonio project and the Cerro del Gallo project. Cerro has a historical resource which is not NI 43-10 compliant at this time and San Antonio has 1.735 million ounces of M&I @ 0.83 g/t and an Inferred 67,000 ounces @ 0.34 g/t.

It also has two low grade assets that are currently in production (San Agustin Mine and La Colorada Mine) and providing cashflows to be used in further drilling development.

In total, Heliostar has 3.2 million ounces of gold in the M&I category and 1 million ounces in the Inferred category.

PRODUCTION

The company produced 20,795 ounces of gold and 43,076 ounces of silver in 2024.

For 2025, the company is projecting 31,000 – 40,000 ounces of gold production and 76,500 – 94,500 ounces of silver production at an All-In Sustaining Cost (AISC) of US$ 1,950 – $ 2,100. This would provide very healthy margins as gold prices hover near US$ 3,700.

In Q2 2025, 7,396 gold equivalent ounces (“GEO”) were produced at an All-In Sustaining Cost of Capital (AISC, which includes all costs including corporate overhead) of $1,541 per GEO sold in Q2 2025

FINANCIALS

As the company ramps up production, it generated revenues of $ 28 million in Q2 2025. It also reached profitability in Q2 2025. It had net income of $ 1.9 million, compared to a loss of $ 2.3 million in the same quarter a year ago.

The company had $ 29.7 million in cash and $ 51 million in working capital as at June 30, 2025.

The 3-year stock price chart:

While it is overbought at this time and may pull back to consolidate soon, Heliostar Metals is worth keeping an eye on as this major gold bull market continues.

https://www.heliostarmetals.com/

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