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Helio Provides Tanzania Update

Corporate Updates

Helio Provides Tanzania Update

TSX-V Trading Symbol: HRC

VANCOUVER

,

July 27, 2018

/CNW/ - Helio Resource Corp. ("

Helio

" or the "

Company

"; TSX-V:

HRC) hereby provides an update of the SMP Gold Project located in

Tanzania

.

Helio's SMP project comprises 8 Prospecting Licenses (PLs), 4 Retention Licences (RLs), and one

licence under application (see map below). The four Retention Licences are RL 0009 (Saza), RL

0010 (Gap), RL 0011 (Kwaheri), and RL 0012 (Illunga). Under the Tanzanian Mining Act, 2010,

Retention Licences were issued to projects at which a mineral resource had been identified, but the

projects could not be developed to mine status by reason of technical constraints, or other economic

factors which are temporary in nature.

Changes to the Mining Act 2010 were announced by the Tanzanian government in

June 2017

, and

have resulted in the Retention Licence classification being abolished and ownership transferred to

the government. The Company has been assured verbally by government officials that the Tanzanian

government will not expropriate the ground covered by the Retention Licences and wants to work

with the Retention Licence holders to ensure that projects are advanced to the point where a mining

licence can be applied for.

The Tanzanian government has formed a Mining Commission which will make recommendations for

the way forward with regards to the ground covered by Retention Licences. After consultation with

ministers from the Ministry of Minerals, Helio has applied for the ground covered by the Retention

Licences to be re-issued as Prospecting licences to allow the project to be advanced. However, the

Commission has yet to make any recommendations or any commitment as to a date by which its

recommendations will be made.

About the SMP Gold Project

The SMP Gold Project covers a 200km

2

area in the Lupa Goldfields,

SW Tanzania

and is adjacent

to the New Luika Gold Mine, operated by Shanta Gold Limited, an AIM-listed company. On

March

26, 2015

, Helio released a mineral resource estimate for the SMP Gold Project, comprising an

Indicated Resource of 7.5 MT grading 2.4 g/t Au for 590,000 oz Au contained, and an Inferred

Resource of 0.56 Mt at 2.5 g/t Au containing 45,000 oz Au. The Indicated Resource is broken down

into 5.9 Mt grading 1.8 g/t Au for 332,000 oz inside a pit-constrained shell at a gold price of

US$1,400

/oz and 1.6 Mt grading 4.9 g/t for 258,000 ounces of potentially underground mineable

material. A NI 43-101 Technical Report for the Mineral Resource Estimate can be viewed here -

click here for full details

.

Richard Williams

, M.Sc., P.Geo., Helio's CEO and a Qualified Person as designated by NI 43-101,

has reviewed and approved the contents of this news release.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams"

Richard D. Williams

, P.Geo, CEO & President

Map of the SMP Gold Project (CNW Group/Helio Resource Corp.)

Neither the 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.

Statements Regarding Forward-Looking Information

Certain statements contained in this news release may contain forward-looking information within

the meaning of Canadian securities laws. Such forward-looking information is identified by words

such as "anticipated", "estimates", "intends", "expected", "believes", "may", "will" and include,

without limitation, statements regarding the company's plan of business operations (including plans

for progressing assets), estimates regarding mineral resources, projections regarding

mineralization and projected expenditures. There can be no assurance that such statements will

prove to be accurate; actual results and future events could differ materially from such statements.

Factors that could cause actual results to differ materially include, among others, metal prices,

risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource

estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns.

Most of these factors are outside the control of the company. Investors are cautioned not to put

undue reliance on forward-looking information. Except as otherwise required by applicable

securities statutes or regulation, the company expressly disclaims any intent or obligation to update

publicly forward-looking information, whether as a result of new information, future events or

otherwise.

SOURCE

Helio Resource Corp.

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/July2018/27/c5951.html

%SEDAR: 00012999E

For further information:

please contact Richard Williams at +1 604 210 8753.

CO: Helio Resource Corp.

CNW 16:30e 27-JUL-18