Heliostar Drills Multiple Gold Intercepts over 200 Metres From Pit Edge at San Agustin
TSX.V: HSTR
OTCQX: HSTXF
Heliostar Drills Multiple Gold Intercepts over 200
Metres From Pit Edge at San Agustin
HIGHLIGHTS:
• Corner Expansion Zone
o 35.1 m grading 0.40 g/t Aueq from 1.5 m
o 19.8 m grading 0.60 g/t Aueq from 1.5 m
o 54.9 m grading 0.23 g/t Aueq from 0 m
o 53.3 m grading 0.27 g/t Aueq from 48.8 m
o 13.7 m grading 0.81 g/t Aueq from 67.0 m
o 30.5 m grading 0.64 g/t Aueq from 48.8m
• Phase 3 SW Zone
o 15.2 m grading 0.27 g/t Aueq from 24.4 m
o 13.7 m grading 0.31 g/t Aueq from 9.1 m
o 16.8 m grading 0.32 g/t Aueq from 27.4 m
• MKT Zone
o 16.8 m grading 0.50 g/t Aueq from 9.1m
o 33.5 m grading 0.27 g/t Aueq from 30.5m
• Corner Expansion Zone intercepts over 200 metres from reserve edge and remains open
• Second rig added and program expanded to 15,000-18,000 metres in 2026
• Results indicate potential for resource expansion that could extend mine life
Vancouver, Canada – March 17, 2026 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “ Company”) is pleased to announce the Company’s first results from drilling at its
100% owned San Agustin Mine in Durango, Mexico. For 2026, Heliostar has committed to a US$9.75M
resource and reserve drilling program which has been increased from 10,000- 15,000 metres to 15,000-
18,000 metres of drilling. The program has a primary aim of finding additional oxide resource ounces to
support an extension of the mine life.
Heliostar CEO, Charles Funk, commented, “Momentum at San Agustin continues to grow - building from
expansion permits being granted in July 2025, through the restart of mining in December 2025 and first
gold produced and sold in January 2026. Today’s results continue this positive trend showing that oxide
gold mineralization extends for over 200 m from the edge of the current reserves at San Agustin. These
intercepts have similar grades to those in the current mine plan that, due to the very low 0.9:1 strip ratio,
generate significant cashflow. Today’s results have the potential to expand the mine life of San Agustin.”
“We have added an additional drill rig to accelerate the drill program and aim to complete an updated
resource for economic assessment to support the mine life expansion decision . Additional production at
San Agustin can generate significant cash flow in today’s metals price environment. This will further
support the Company’s plan to build Ana Paula in 2027-28 without requiring equity financing.”
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Drilling Program
Heliostar has completed 7 5 holes and 7,230 metres to date in the current program that is testing eight
near mine target areas. Today ’s release covers 53 holes totalling 5,148 metres from three of the eight
target areas, namely the Corner Expansion, Phase 3 SW and MKT Zones (Figure 1) . Results demonstrate
the potential for production growth and mine life extension at San Agustin. Intercepts at the Corner
Expansion Zone show mineralization over 200 metres southwest of the edge of the current reserve that
remains open. Drilling at the Phase 3 SW Zone has shown that mineralized corridors extend beyond the
current pit and warrant follow-up drilling and the MKT Zone has returned widespread low-grade intervals.
Encouraging results at the Corner Expansion Zone have driven the decision to expand the drill program to
define a potential resource. This drilling will include both core and reverse circulation (“RC”). Core drilling
will be used to collect rock strength data, hydrogeologic data and samples for detailed metallurgical
studies. This will allow Heliostar to gather the engineering and metallurgy information required to
evaluate an additional pit layback beyond the reserve that is currently being mined.
Figure 1: Plan map of oxide targets and reported drill hole locations at San Agustin Mine. Areas with yellow
shading have been drilled and non-shaded areas remain to be tested.
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Figure 2: Detailed plan map of drilling in Corner Expansion Zone
Figure 3: Cross section through selected holes in the Corner Expansion Zone
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Corner Expansion Zone Results Summary
The Corner Expansion Z one drilling demonstrates that mineralization is prevalent beyond the current
reserve. A mineralized corridor extending 200 m away from the current pit boundary is defined by the
intercepts in 25-SAGRC-739, -740, and -746 and remains open to further expansion (Figures 2 and 3).
Mineralization in the corridor is principally controlled by the southwest -striking Arturo fault with
secondary controls including favourable lithologies and lithologic contacts. Planned definition drilling with
both core and RC will increase the drilling density to support a resource model ahead of potential mining.
The extension of the Arturo Fault mineralization has been a focus of drilling to date with multiple
successful exploration intercepts along the structure. However, there are several other zones which have
recently been identified in new blasthole drilling as well as historic drilling. These will be tested by initial
RC drilling and followed up with additional drilling if successful.
Holes 26-SAGRC-761 to -764 were drilled as part of a campaign to validate the geologic and resource
model in areas internal to the current reserve pit with limited drilling. It was noted that many areas in the
pit modelled as waste can be attributed to a lack of drill information. This represents the opportunity that
there may be additional tonnes already in the mine plan that can be added to the leach pad and
monetized.
Phase 3 SW Results Summary
Drilling at the Phase 3 SW Zone located extensions of high-grade southwest-striking mineralized corridors
and disseminated mineralization at the margin of the existing pit. The program included 10 holes totalling
640 metres. Key intercept s include 25-SAGRC-733 and - 734 which intercepted 15. 2 m at 0.2 7 g/t gold
equivalent from 24.4 m and 13.7 m of 0.3 1 g/t gold equivalent from 9.1 m, respectively. These two
intercepts define the continuation of a key mineralized structure . Hole 25-SAGRC-729 highlights an
additional potential zone with 16.8 m of 0.32 g/t gold equivalent from 27.4 m.
MKT Zone Results Summary
Results from the MKT zone define a large and consistent zone of mineralization near the current mining
cut-off grade. Drilling at MKT includes 15 holes totaling 1,280 m meters drilled at the northwest side of
the pit and covering an area of 130 by 150 metres. These results will be incorporated into future models
to determine the potential to lay back the wall in this area. The potential strip ratios would likely be
favourable. Further drilling is planned in the area to define higher grade mineralization that would
improve mining economics.
Results Details
True widths are unknown . Mineralization at San Agustin occurs as disseminations and structurally and
stratigraphically controlled zones. Multiple controls on these zones include northwest - and northeast-
striking sub vertically dipping faults, lithology, and fracture networks. Drill orientation is optimized to test
the dominant control in the area.
Drilling at San Agustin is ongoing with the recent addition of a second drill rig. The two drill rigs will test
both major target concepts at the mine: near mine oxide targets and underlying sulphide potential. The
expansion of the program to 15,000-18,000 metres will allow for a resource drilling program to follow up
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todays results and first pass testing of the Phase 3, Phase 5, MKT -2, La Isla, and Phase 7 Oxide Target
Zones.
The next San Agustin drill results are anticipated to be released in Q2, 2026.
Drilling Results and Coordinates Tables
Hole Name From
(metres)
To
(metres)
Interval
(metres)
Au
(g/t)
Ag
(g/t)
Au-
equiv
(g/t)
Hole
Purpose
25-SAGRC-720 76.2 89.9 13.7 0.47 0.9 0.47 MKT Zone
25-SAGRC-722 19.8 32.0 12.2 0.38 0.9 0.38 MKT Zone
25-SAGRC-723 30.5 64.0 33.5 0.27 1.0 0.27 MKT Zone
25-SAGRC-725 57.9 71.6 13.7 0.58 0.5 0.59 MKT Zone
25-SAGRC-726 9.1 25.9 16.8 0.50 0.8 0.50 MKT Zone
25-SAGRC-729 9.1 19.8 10.7 0.23 5.3 0.24 Phase 3 SW Zone
and 27.4 44.2 16.8 0.29 19.1 0.32
25-SAGRC-730 4.6 19.8 15.2 0.24 18.8 0.28 Phase 3 SW Zone
25-SAGRC-733 24.4 39.6 15.2 0.25 10.2 0.27 Phase 3 SW Zone
25-SAGRC-734 9.1 22.9 13.7 0.30 1.8 0.31 Phase 3 SW Zone
25-SAGRC-736 16.8 29.0 12.2 0.20 8.2 0.22 Phase 3 SW Zone
and 44.2 50.3 6.1 0.51 11.6 0.53
25-SAGRC-739 3.1 12.2 9.1 0.13 6.1 0.15 Corner Extension
and 18.3 32.0 13.7 0.27 27.7 0.32
and 48.7 59.4 10.7 0.51 5.1 0.52
25-SAGRC-740 35.1 41.2 6.1 0.26 20.4 0.30 Corner Extension
and 48.8 102.1 53.3 0.21 29.5 0.27
and 112.7 141.7 29.0 0.39 20.5 0.42
25-SAGRC-741 0.0 54.9 54.9 0.20 17.3 0.23 Corner Extension
and 62.5 86.9 24.4 0.36 52.3 0.48
25-SAGRC-742 1.5 29.0 27.5 0.28 8.6 0.29 Corner Extension
25-SAGRC-744 77.7 86.8 9.1 0.27 9.1 0.29 Corner Extension
and 94.5 102.1 7.6 0.44 63.0 0.55
25-SAGRC-745 1.5 36.6 35.0 0.39 7.0 0.40 Corner Extension
25-SAGRC-746 18.3 24.4 6.1 0.18 2.8 0.18 Corner Extension
and 48.7 79.2 30.5 0.63 4.9 0.64
25-SAGRC-747 118.9 125.0 6.1 1.19 48.9 1.34 Corner Extension
25-SAGRC-749 42.7 61.0 18.3 0.27 34.7 0.34 Corner Extension
and 80.7 103.6 22.9 0.35 39.0 0.42
25-SAGRC-750 67.0 85.3 18.3 0.30 36.0 0.36 Corner Extension
25-SAGRC-752 1.5 21.3 19.8 0.52 46.0 0.60 Corner Extension
26-SAGRC-761 0.0 12.2 12.2 0.21 8.0 0.23 Corner Reserve
and 18.3 35.1 16.8 0.17 15.7 0.20
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and 41.1 85.3 44.2 0.43 32.7 0.49
and 93.0 108.2 15.2 0.32 18.4 0.38
26-SAGRC-762 0.0 12.2 12.2 0.25 5.1 0.26 Corner Reserve
and 24.4 54.9 30.5 0.31 15.0 0.34
and 71.6 82.3 10.7 0.14 50.0 0.23
and 82.3 89.9 7.6 0.25 47.0 0.40
Table 1: Highlighted significant Drill Intersections. A full table of results can be found on the Company’s
website here.
The AuEq grades were calculated using ratios of metal prices and metal recoveries in the following equation:
• AuEq = (Au + Ag/equivalency factor)
Where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery))
Au price = $2,150 USD per ounce and Ag price = $26 USD per ounce
Au recovery (oxide) = 66% and Au recovery (transition) = 38%
Ag recovery (oxide) = 10% and Ag recovery (transition) = 10%
Drilling Coordinates Table
Hole ID
Easting
(NAD27 MX
Zone 13N)
Northing
(NAD27 MX
Zone 13N)
Elevation
(metres)
Azimuth
(°)
Inclination
(°)
Length
(metres)
25-SAGRC-720 539,540 2,741,842 1911.9 45.1 -45.5 97.5
25-SAGRC-722 539,510 2,741,814 1909.3 45 -45.4 91.4
25-SAGRC-723 539,490 2,741,828 1909.5 44.8 -45.5 91.4
25-SAGRC-725 539,565 2,741,903 1911.4 45 -45.5 91.4
25-SAGRC-726 539,502 2,741,875 1910.9 45.1 -70.3 85.3
25-SAGRC-730 540,583 2,740,970 1868.9 135.1 -45.3 39.6
25-SAGRC-733 540,476 2,741,113 1872.9 135.2 -45.5 56.4
25-SAGRC-734 540,475 2,741,077 1876.0 135.2 -45.5 85.3
25-SAGRC-736 540,496 2,740,985 1870.9 135.2 -45.6 126.5
25-SAGRC-739 539,672 2,740,987 1897.2 142 -50.5 128.0
25-SAGRC-740 539,650 2,741,010 1898.0 141.9 -50.4 146.3
25-SAGRC-741 539,728 2,741,060 1895.9 135 -50.2 103.6
25-SAGRC-742 539,775 2,741,011 1893.7 135.1 -50.1 103.6
25-SAGRC-744 539,548 2,741,098 1901.3 134.9 -50.1 170.7
25-SAGRC-745 539,672 2,740,939 1897.8 134.9 -50.1 103.6
25-SAGRC-746 539,648 2,740,963 1898.3 135.4 -50.3 128.0
25-SAGRC-747 539,606 2,740,969 1899.5 135.2 -50 179.8
25-SAGRC-749 539,758 2,741,179 1896.2 143.1 -45.3 111.3
25-SAGRC-750 539,718 2,741,142 1897.0 135.2 -50.3 91.4
25-SAGRC-752 539,836 2,741,022 1891.8 135 -49.9 85.3
26-SAGRC-761 540,021 2,741,122 1896.4 135.1 -45.1 158.5
26-SAGRC-762 539,989 2,741,116 1894.4 134.8 -45 97.5
Table 2: Highlighted Hole Details. A full table of details can be found on the Company’s website here.
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San Agustin Technical Report Note
Heliostar filed the technical report titled “ San Agustin Operations, Durango State, Mexico, NI 43 -101
Technical Report” on SEDAR+ on January 14 , 2025. Additional details on the San Agustin project can be
found here.
Quality Assurance / Quality Control
Reverse circulation (RC) holes were drilled with 5-1/8 inch tools. Reverse circulation samples with a mass
of >20kg were split into one-quarter, which was submitted for analysis. Reverse circulation samples with
a mass of ≤20kg were split into two halves, one of which was submitted for analysis. Three-quarters or
one-half of the samples, respectively, were retained as a record. Drill samples were shipped to ALS Limited
in Zacatecas, Zacatecas, Mexico, for sample preparation and analysis at the ALS laboratory in North
Vancouver. The Zacatecas and North Vancouver ALS facilities are ISO/IEC 17025 certified. Gold was
assayed by 30-gram fire assay with atomic absorption spectroscopy finish, and overlimits were analyzed
by 30-gram fire assay with gravimetric finish.
Control samples comprising certified reference and blank samples were systematically inserted into the
sample stream and analyzed as part of the Company’s quality assurance / quality control protocol.
Statement of Qualified Person
Stewart Harris, P.Geo., a Qualified Person, as such term is defined by National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects, has reviewed the scientific and technical information that
forms the basis for this news release and has appro ved the disclosure herein. Mr . Harris is employed as
Exploration Manager of the Company.
About Heliostar Metals Ltd.
Heliostar is a gold mining company with production from operating mines in Mexico. This includes the La
Colorada Mine in Sonora and the San Agustin Mine in Durango. The Company also has a strong portfolio
of development projects in Mexico and the USA. These include the Ana Paula project in Guerrero, the
Cerro del Gallo project in Guanajuato, the San Antonio project in Baja California Sur and the Unga project
in Alaska, USA.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
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.
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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 rel ease, 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, show the full extent of the deposit, upgrade and expand the
resource base, growing our annual production profile in the near term and bringing additional production
online.
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, expectation s, 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 est imated 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 e conomic 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