Heliostar Presents Record Q1 2026 Financial and Operating Results Q1 2026 Highlights:
TSX.V: HSTR
OTCQX: HSTXF
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 m ine 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 w orking 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
Vancouver, Canada, May 12 , 202 6 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company”) reported un audited 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.
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Q1 Operational and Financial Highlights
Record total gold production of 11, 743 gold ounces and 43,798 ounces of silve r 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 move ment
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. T he 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.
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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 gol d 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:
Key Performance Metrics Q1 2026 Q1 2025
Operational
Gold produced (ounces) 11,743 8,787
Silver produced (ounces) 43,798 27,466
Gold sold (ounces) 9,980 7,710
Silver sold (ounces) 10,610 22,927
Cash cost2 per gold ounce sold $1,602 $1,174
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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AISC2 per gold ounce sold $1,996 $1,744
Financial (in ‘000s)
Revenues $54,398 $22,742
Mine operating earnings $30,886 $11,510
Exploration expenses $4,596 $2,363
Net income (loss) before tax $23,119 ($27,604)
Cash $38,741 $27,185
Total assets $165,425 $117,226
Working Capital $70,032 $41,433
1.
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 mine s.
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:
La Colorada Q1 2026 Q1 2025
Gold produced oz 6,890 4,109
Silver produced oz 33,480 18,279
Gold sold oz 5,562 3,092
Silver sold oz 8,413 12,468
Cash cost (by-product)1 $/gold ounce sold $1,601 $909
AISC (by-product)1 $/gold ounce sold $1,703 $981
During Q1, the La Col orada 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.
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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:
San Agustin Q1 2026 Q1 2025
Gold produced oz 4,853 4,412
Silver produced oz 10,318 8,640
Gold sold oz 4,418 4,121
Silver sold oz 2,197 9,936
Cash cost (by-product)1 $/gold ounce sold $1,874 $1,284
AISC (by-product)1 $/gold ounce sold $2,170 $1,356
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 Co rner 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.
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Ana Paula Project
Development and e xploration expenditures at the flagship Ana Paula Project were $ 4.8 million in Q 1,
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 2 4, 2026. Th e 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.
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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 di fferent
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 AIS C 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.
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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.
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.
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: 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, 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