Heliostar Presents Stronger Economics at the La Colorada Mine in Updated Technical Report

Heliostar Metals released an updated Technical Report and Life of Mine (LOM) Plan for its La Colorada Mine in Sonora, Mexico on October 17, 2025. The update incorporates drilling from November 2024 to March 2025. Key highlights of the base case, using a US$2,300/oz gold price, include: * A post-tax Net Present Value (NPV) at a 5% discount rate of US$66.2 million. * A post-tax Internal Rate of Return (IRR) of 24.4%. * Initial capital expenditure (capex) of US$44.5 million. * All-In Sustaining Costs (AISC) of US$1,626 per gold equivalent ounce (GEO). * A 6.1-year mine life producing 286,300 ounces of gold.

Compared to the previous report from January 2025 (which used a US$2,000/oz gold price), the NPV increased by 155%, the IRR more than doubled from 11.9%, and the initial capex was reduced by 17%.

This updated technical report is a materially positive development that significantly de-risks the La Colorada project and improves its economic viability. The previous study from January 2025 showed a marginal project with an 11.9% IRR, which would be difficult to finance. The new 24.4% IRR crosses a critical threshold, making the project much more attractive for debt financing or internal funding.

The key improvements are a 17% reduction in initial capex to US$44.5M and an 8% reduction in AISC to US$1,626/oz. These are impressive operational achievements that demonstrate management's ability to optimize the mine plan.

However, a critical perspective is required. The company has been drilling aggressively at La Colorada since late 2024. News releases from May 15 and April 9, 2025, highlighted excellent drill results and stated the program's intent was to "expand mineral reserves" and "add ounces to the mine plan." This update fails to deliver on that front; reserve gold ounces are marginally down by 1%, and the mine life is 6% shorter.

The significant jump in NPV is heavily influenced by the 15% increase in the base-case gold price assumption (from $2,000 to $2,300). While the operational improvements are real and commendable, the lack of reserve growth after a major drill campaign is a concern and suggests the near-mine expansion potential may be more limited than initially hoped.

Despite this, the update is undeniably positive. It confirms a viable, lower-capex, and more profitable operation. This strengthens the company's ability to self-fund its growth pipeline, particularly the development of its flagship Ana Paula project, which has been the stated strategy since the transformative acquisition in November 2024. The company has consistently delivered on its operational goals, including restarting production, paying off acquisition debt early (Feb 2025), and now optimizing the La Colorada mine plan.

Heliostar Metals is a gold producer and developer with assets in Mexico. In November 2024, the company transformed from a pure explorer by acquiring a portfolio of producing and development assets from Florida Canyon Gold Inc. This portfolio includes the producing La Colorada and San Agustin mines and the development-stage Cerro del Gallo and San Antonio projects.

The company's flagship development project is Ana Paula, a high-grade, bulk-tonnage underground gold project in Guerrero, Mexico. The corporate strategy is to use cash flow from La Colorada and San Agustin to fund the exploration and development of Ana Paula, with the goal of making a construction decision in 2026 and becoming a mid-tier producer.