Heliostar Adds Porphyry Upside with 71.6 Metres of 0.44 g/t AuEq at Zachary Bay, Unga Project, Alaska

Vancouver, September 16, 2021 - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to announce results from two Reverse Circulation (RC) holes completed at the Zachary Bay Target in 2021.

Our primary focus at Unga is high grade gold targets. However, the project also hosts both porphyry gold-copper and bulk tonnage gold targets. These two first-pass RC holes targeted porphyry style mineralization at Zachary Bay and both holes intersected gold and copper mineralization over significant widths. They indicate potential for a large porphyry footprint with zones of higher grade that require additional drilling.

Highlights

• Two holes completed 220 metres apart show open intersections, with local higher-grade zones within each hole.
• Next step is diamond drilling to expand upon higher grade zones, in particular to depth, and drilling the magnetic highs within the porphyry complex.

ZBRC21-01

• 0.44 g/t gold equivalent (AuEq) over 71.63 m from 30.48 metres (m) downhole, including;
  • 0.58 g/t AuEq over 16.76 m from 30.48 m, including;
  • 0.69 g/t AuEq over 6.10 m from 30.48 m

ZBRC21-02

• 0.34 g/t AuEq over 91.44 m from 9.14 m including;
  • 0.40 g/t AuEq over 41.15m from 9.14 m

Note: All numbers are rounded and widths represent drilled lengths.

Heliostar CEO, Charles Funk, commented "Unga is a rare project containing the potential for multiple deposit types. These holes show the potential for a gold-copper porphyry at the Zachary Bay target. They represent first pass drilling to establish the best location for follow-up diamond drilling. Both holes have higher grade sub-zones. It is important to note that hole ZBRC21-02 has grades that increase with depth and the best intervals are at the very base of the hole. High grade gold is the company's primary focus, however the proximity of the different deposit styles, as was the case at the Saddle and Saddle North deposits that GT Gold (now Newmont) discovered in northern British Columbia highlights the potential value creation of exploring both styles of mineralization."

Figure 1: Plan Map of Unga project with highest priority targets highlighted. The reader is cautioned that a qualified person has not been able to independently verify the resource at Centennial and the historical assay results presented at Zachary Bay and Heliostar plans on conducting an exploration program at Centennial to establish the grades and widths of mineralization at these prospects. The SH-1 resource is current and is referenced in the "Amended and Restated N.I. 43-101 Technical Report & Resource Estimate for the SH-1 Gold and Silver Deposit" by W.T. Ellis and dated November 24, 2020 and can be found at www.sedar.com.

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Zachary Bay Target

The Zachary Bay Porphyry is a compelling drill target based on several factors:

• The overall size of the porphyry core (300 x 650 m) based on mapping and ground magnetics surveys;
• A zoned alteration from (500 x 1,000 m) from outer propylitic, argillic and advanced argillic alteration in andesite to a core of potassically alterted porphyritic diorite;
• Only a single 117 metre deep, vertical hole drilled within the porphyry prior to Heliostar. This hole was mineralized over its entire length;
• The proximity to the potentially related, high grade vein corridors.

A joint Quintana Minerals Corp. and Duval Corp. exploration program identified Zachary Bay in 1974. One round of drilling was completed with 4 holes totalling 291 metres in 1975. Of these four holes, only one was drilled in the porphyry and the other holes were drilled at other targets located over 400 metres to the east of Zachary Bay.

The 1975 hole (Z1) was drilled vertically, a poor orientation to effectively test a large, sub-vertical porphyry complex, but nonetheless returned 0.45 g/t gold equivalent over 107.1 metres (0.28 g/t gold and 0.11 % copper), with individual gold values up to 0.95 g/t. Mineralization remains open in all directions (The reader is cautioned that the qualified person has not been able to independently verify the historical assay results in the Quintana Duval drilling).

Figure 2 (left): Zachary Bay plan map drill hole locations shown on Reduced to Pole Magnetics. Figure 3 (right): Zachary Bay hole ZBRC21-01 cross section looking to the north.

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Heliostar's compilation of the historic drilling, magnetic surveying, and two IP survey lines from 2005, combined with detailed field mapping completed by Heliostar in early 2021 confirmed a large porphyry system at Zachary Bay, with large areas masked by thin (0-10 metres) overburden.

The team completed two RC holes to test the extent of the porphyry complex. Hole ZBRC21-01 was a 135 metre step towards the south from 1975 hole Z1. The entire hole returned 118.9 m of 0.39 g/t gold equivalent (0.15 g/t gold and 0.15% copper) from 9.14 m in a diorite porphyry covered by thin overburden. Within this zone intervals of higher grade include 16.76 m at 0.58 g/t gold equivalent, with individual assays up to 0.42 g/t gold and 0.3 % copper.

The presence of both higher grade zones of mineralization and variable gold-to-copper ratios suggest multiple porphyry and alteration phases. Testing the extension of these zones will be the focus of follow-up drilling.

Hole ZBRC21-02 is located at the edge of the northern magnetic high, 108 metres northeast of the historic hole Z1. The location is near a small outcrop containing magnetite and chalcopyrite veining hosted by diorite porphyry. The entire hole contained gold and copper mineralization from surface to the end of hole at a depth of 100.58 m. Grades for the interval average 0.34 g/t gold equivalent (0.19 g/t gold and 0.09 % copper).

However, most significant is that the mineralization increased towards the end the of the hole which terminated in 3.05 m of 0.64 g/t gold equivalent (0.41 g/t gold and 0.14% copper). The hole is drilling towards the most intense magnetic high within the Zachary Bay target but ended due to limitations of the RC drill rig before testing the magnetic target. This will be a clear target for follow-up drilling.

Figure 4: Geology map and outcrop samples. Sample UG018 shows outcropping chalcopyrite and magnetite mineralized diorite porphyry

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Table of Results

Table 1: Table of significant intersections from the Zachary Bay target.

Note: All numbers are rounded and intervals represent drilled lengths. Gold equivalent is calculated using the following formula: gold-equivalent = ((Au_g/t x 48.23) + (Cu_ppm x 0.0077)) / 48.23. Metal price assumptions are $1,500 per ounce gold and $3.50 per pound copper.

Drillhole Details

Table 2: Zachary Bay target drill hole details. NAD83, Zone 4 Coordinate system.

Quality Assurance / Quality Control

Drill samples were shipped to ALS Limited in Whitehorse, Yukon for sample preparation and for analysis at the ALS laboratory in North Vancouver. The ALS Whitehorse and North Vancouver facilities are ISO/IEC 17025 certified. Silver and base metals were analyzed using a four-acid digestion with an ICP finish and gold was assayed by 30-and 50 gram fire assay with atomic absorption ("AA") spectroscopy finish and overlimits were analyzed by 50g fire assay with gravimetric finish.

Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.

Qualified Person

The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., Exploration Manager for the Company. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101.

About Heliostar Metals Ltd.

Heliostar is a well-financed 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 240 km² across the two islands. Additional targets on the property include porphyry copper-gold targets, high sulphidation targets 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 early-stage projects considered prospective for epithermal gold-silver mineralization.

For additional information please contact:

Charles Funk
Chief Executive Officer
Heliostar Metals Ltd.
Email: charles.funk@heliostarmetals.com

Rob Grey
Investor Relations Manager
Heliostar Metals Ltd.
Phone: +1 778 357 1313
Email: rob.grey@heliostarmetals.com

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.

Forward-Looking Information. This release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "would", "may", "could" or "should" occur. Forward-looking statements in this press release include Heliostar's plans to continue aggressive exploration at Unga in 2021 and its goal of defining a resource in excess of one million ounces, its plan to continue infill drilling to expand to depth where the system remains open, and its belief that the SH-1 prospect has considerable potential for expansion. Although Heliostar believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not a guarantee of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, weather, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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