Stonegate Capital Partners Updates Coverage on Heliostar Metals Ltd (HSTR) 3Q26

• 2026-03-26: Stonegate Capital Partners updates coverage on Heliostar Metals Ltd (HSTR) highlighting:
• Ana Paula: flagship project in Guerrero, Mexico, advancing toward a Feasibility Study in 1H27; 9-year underground mine designed to produce about 101 koz of gold per year after ramp-up.
• Expansion Zone drilling at Ana Paula: notable drill result of 25.45 m at 8.26 g/t gold.
• Multi-asset growth optionality: Cerro del Gallo (NPV5% ~$424M, IRR ~33.1%) and Goldstrike (past-producer in the U.S. with ~95 koz/year potential).
• Implication: progression of key projects supports a longer-term growth trajectory; funding for exploration remains planned to be sourced from mine cash flow.
• 2026-03-24: Heliostar to acquire Goldstrike Gold Project in Utah from Liberty Gold Corp. for $72.5M (cash and stock with milestone payments totaling up to $60M). Goldstrike indicates about 975 koz Au indicated resource; Carlin-style deposit with exploration upside; an updated technical report to be published within ~45 days to support the updated resource. Strategic options include development sequencing and potential SPV structuring to separate gold and critical minerals value streams.
• 2026-03-23: Acquisition details for Goldstrike (as above) and the plan to publish an updated technical report; board and strategic review ongoing to evaluate sequencing and potential monetization options.
• 2026-03-19: Heliostar 9M 2025 results release shows solid progress: Q3 2025 GEOs; restart coordination for San Agustin; Ana Paula Feasibility work; cash balance ~$41M; no debt; exploration budget flagged for 2026; restart of San Agustin (first gold poured Jan 2026) expected to be a major cash-flow driver in 2026; PEA data (Ana Paula) continue to underpin a pathway to 500,000 oz/year by late decade.
• 2026-03-17: Drill results at San Agustin (Mexico) show multiple intercepts over 200 m from pit edge in Corner Expansion and related zones; program expanded to 15,000-18,000 m with a second rig; potential to extend mine life and add oxide resources; quotes emphasize momentum and potential to fund Ana Paula through cash flow.
• 2026-03-17: Presentation at OTCQX Best Virtual Investor Conference; emphasis on Ana Paula, La Colorada, and San Agustin; near-term catalysts include 2026 guidance and progress on Ana Paula; updated results webcast.
• 2026-03-02 to 2026-03-03: Various strategic moves including option agreements on non-core Mexican properties with Zacatecas Silver (positive for portfolio management and cash flow) and addition of Tara Gilfillan to the Board as Senior Governance/Board member; no immediate equity dilution disclosed in these items, but standard governance and expansion of the board.
• 2026-02-24: Ana Paula Expansion drilling results (Expansion Zone 25.45 m @ 8.26 g/t Au; strong near-mine growth potential); drilling program expanded; Feasibility Study anticipated for 1H27.
• 2025-12 to 2026-01: Cerro del Gallo PFS and Cerro del Gallo Prefeasibility (PFS) studies filed; Cerro del Gallo adds optionality with a multi-decade scale, low CAPEX/high-free-cash-flow profile per PFS; La Colorada expansion and permitting progress marketed as favorable.
• 2025-11 to 2026-01: Multiple updates on 2025 production, 2026 guidance, exploration budgets, and 2026 plan across La Colorada, San Agustin, Ana Paula; ongoing plans to restart or ramp mining at multiple sites; 2025-12 announcements show a mixture of expansion, permitting progress, and financial discipline.
• 2025-04 to 2025-11: Several financings and management updates, including a bought deal in March 2025 that raised C$19.5M with major participation by Eric Sprott (C$5M); new management appointments (IR, governance) and board transitions (new Chairman appointment anticipated) signal a focus on funding growth and governance.

Material impact assessment: - The most recent news (3Q26 coverage update) reinforces the ongoing multi-asset growth plan and confirms the core Ana Paula development is advancing toward a Feasibility Study in 1H27, with a clean view of cost metrics and IRR from the November 2025 PEA (NPV5% ~$426M, IRR ~28%). The Goldstrike acquisition adds optionality and geographic diversification, potentially expanding the company’s production footprint in North America. - The news is positive and incremental (Routine - Positive). It aligns with prior expectations (progress toward Feasibility at Ana Paula; ongoing exploration to extend mine life; potential accretive asset acquisitions). It is not a surprise or a game-changing surprise given the company’s stated strategy and prior PEA/PEA-like disclosures. The acquisition of Goldstrike provides upside optionality, but the fundamental drivers (Ana Paula economics, San Agustin restart, La Colorada expansion) are consistent with the company’s near- to mid-term road map.

What to watch next (immediate, 3-6 months) - Immediate catalysts: - Updated technical report on Goldstrike post-acquisition (within 45 days from late March 2026). - Feasibility Study and project design updates for Ana Paula (1H27 timeframe), including the underground decline advancement and mine plan optimization. - San Agustin permitting and the restart cadence; 2026 guidance refresh as production scales with the San Agustin restart and La Colorada operations. - Cerro del Gallo ongoing studies and any decision milestones; potential capital plan alignment with Ana Paula and other portfolio assets. - 3-6 months horizon: - Updated mineral resources and reserves for Ana Paula (conversion from inferred to indicated/reserves) as drilling continues (including Expansion Zone results). - Additional results from Goldstrike and performance metrics from the acquisition integration (operational synergies, potential throughput expansion, or restricted capex plans). - Potential partner/financing updates if more capital is required to accelerate Ana Paula Feasibility or Cerro del Gallo advancement. - Corporate updates: further board governance steps and any additional management additions or changes. - What to look for in future news: - Feasibility study completions and corresponding capex/cash flow projections for Ana Paula. - Updated mineral resource updates and reserve statements for La Colorada, San Agustin, Ana Paula. - Any new strategic options or SPV structures around Goldstrike and Cerro del Gallo. - Quarterly production guidance updates and 2027–2030 growth plans toward mid-tier production.

Conclusion on Materiality - The latest news is material only in a routine, incremental sense: it reinforces the company’s growth trajectory and underpins value through Ana Paula’s Feasibility timeline, near-term mine restarts, and added optionality from Goldstrike. While the Goldstrike acquisition is strategically meaningful (diversifies production and expands asset base), the core value driver remains Ana Paula and nearby project economics. Given the breadth of the portfolio and the ongoing capital discipline (self-funded exploration, funded restarts), the news supports a positive but not transformative recalibration of the company’s risk/reward profile.

Technical Analysis and Price Support Resistance Breakout levels - Price data: Price data not provided. Time-series analysis cannot be performed from the provided information. - Therefore, no defined support or resistance levels, no breakout level, and no trend assessment can be reliably concluded from the chart data alone.

Company overview and flagship project - Heliostar Metals Ltd. is a multi-asset precious metals company, with Ana Paula (Guerrero, Mexico) as its flagship underground gold project targeting near-term feasibility and longer-term production. It is expanding its portfolio with Cerro del Gallo (Guanajuato, Mexico), San Agustin (Durango, Mexico), La Colorada (Sonora, Mexico), and Unga (Alaska) among others. - Ana Paula: high-grade underground potential with a PEA-based economics indicating a path to robust margins; Feasibility Study planned for 1H27; plan to restart the decline in 2026 with an eye toward production in 2028 as per statements. - San Agustin: restarted operations in late 2025/early 2026 with initial gold pours; ongoing drill program (Corner Expansion, Phase 3 SW, MKT) expanding oxide resources and mine life. - Goldstrike: acquisition of a ~1 Moz-scale asset in Utah/U.S. pending regulatory approvals; could provide near-term production optionality and geographic diversification.

Capital structure including financings and levels - Equity financings: - 2025-03-28: Bought deal financing of US$19.5 million (~CA$) with underwriters; major investor Eric Sprott (2176423 Ontario Ltd.) subscribed for US$5 million (~5 million shares). Proceeds intended for project development (Ana Paula, drilling, general corporate). - Outstanding shares and warrants (as of mid-2025): - Issued shares around 244–251 million range; common shares outstanding roughly 245–251 million. - Warrants: multiple tranches with exercise prices around CA$0.30–$0.40 and expiries ranging from late 2025 to 2029; notable higher exercise price warrants up to CA$0.90 expiring 2026–2027. - Stock options: various grants with expiries through 2028–2030; many vest over multiple years. - Cash and liquidity (selected period references): - 2025-11-20: Cash and working capital reported around $49 million; cash balance around $34.6 million earlier in 2025; no debt at that time. - 2026-03-19: Cash balance reported around US$41 million; still no debt. - Debt: The company reported no debt in late 2025 and early 2026; prior acquisition debt was fully paid by April 2025.

Strategic investors - Eric Sprott and 2176423 Ontario Ltd. participated in the March 2025 bought deal (US$5 million on 5 million shares). This indicates a credible strategic interest from a prominent mining investor and provides a potential signaling effect for other long-only and private investors.

Debt risk and capital needs - Current state: No debt reported in late 2025/early 2026; strong cash position supports exploration and growth funding. - Near-term capital needs: Ana Paula Feasibility (1H27) and the potential Cerro del Gallo development require CAPEX; Cerro del Gallo PFS indicates some capital need (initial capex around US$195M in the PFS). The Goldstrike acquisition adds capex/working capital considerations, depending on the closing timeline and financing plan. - Upside: Operating cash flow from La Colorada and San Agustin supports internal funding for expansion and Ana Paula advancement, reducing the need for equity financing.

Key and hidden risks - Permitting and regulatory risk, particularly for La Colorada expansion (SEMARNAT/positiva ficta process) and underground modifications at Ana Paula; permitting timelines may affect project milestones. - Exploration risk: drilling results, expansion potential, and resource conversions remain probabilistic until updated feasibility studies and reserves declarations are published. - Price risk: gold and silver price assumptions heavily influence project economics (PEA, PFS, and updated feasibility studies). Market volatility could alter NPV/IRR economics materially. - Execution risk: restart of San Agustin and development of Ana Paula require technical, operational, and regulatory alignment; potential for cost overruns or schedule delays exists. - Dilution risk: equity financings (like the March 2025 bought deal) inject capital at multiples of the share price; if dilution is significant, it could affect short-term equity value.

Final summary and takeaways - The latest release reinforces Heliostar’s multi-asset growth strategy with a credible near-term pathway to production at Ana Paula (Feasibility Study in 1H27) and a restarted San Agustin cash flow base in 2026. The Goldstrike acquisition adds optionality and geographic diversification in the U.S. The company remains cash-positive with no debt and is actively funding growth through a combination of operating cash flow and selective equity raises. - While the press emphasizes meaningful milestones, the materiality is more routine in nature—an affirmation of the ongoing plan rather than a one-time, high-impact catalyst. The next 3–6 months should reveal updated Goldstrike economics, Goldstrike-related reports, and Ana Paula Feasibility progress, plus potential updates on La Colorada expansion and San Agustin’s ongoing operations.

Appendix and Sources - Period of news data: 2025-03-31 to 2026-03-26 (latest). - Price data: Price data not provided. - Key statements used: - 2026-03-26 Stonegate Capital Partners coverage on Heliostar (Ana Paula expansion, Feasibility 1H27, 9-year mine life; Cerro del Gallo and Goldstrike optionality). - 2026-03-24 Goldstrike acquisition details and planned technical report update. - 2026-03-19 9M 2025 results and guidance; San Agustin restart; Feasibility update waterfall. - 2026-03-17 San Agustin drill results and program expansion (15,000–18,000 m; Second rig). - 2026-02-24 Ana Paula Expansion Zone drill results. - 2025-12 to 2026-01 updates on Cerro del Gallo PFS, La Colorada updates, and corporate governance changes. - 2025-11-20 to 2025-12-01 updates on cash position, debt status, and private placements. - Sources include company press releases and investor updates as listed in the News JSON (HSTR items from 2025 to 2026).