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 Wed May 24, 2006
News Release & Shareholder Update

 The Management and Board of Directors of Helio Resource Corp (TSX-V: HRC) is pleased to provide an update on the Company's exploration activities in Namibia, Botswana and Tanzania.

Highlights and Outlook
  1. SAZA gold project, Tanzania. Data review and interpretation complete. Property-wide geophysics, mapping and sampling of high-priority targets completed. Multiple high-quality targets identified. Drilling is scheduled for June.

  2. $2,000,000 financing closed in February. $3,300,000 cash on hand, plus $340,000 in negotiable securities.

  3. VREDELUS gold project, Namibia. Teck Cominco Namibia Ltd ("Teck Cominco") has completed a 20-hole, 3,043m RC phase 1 drill programme. Results are expected next month.

  4. HONIB polymetallic project, Namibia. Follow-up soil and rock sampling has identified a 30 kilometre long package of prospective rocks, hosting high-grade silver and copper mineralisation. Rock samples have returned up to 1.2kg/t silver. A short geological drilling programme (approximately 1,000m) has commenced, the objective being to better understand the geology, and the nature of controls on mineralisation.

  5. LEICESTER copper and MAKURU gold projects, Namibia. Yale Resources has budgeted $500,000 to drill-test both projects in the coming 6 months.

  6. TEVREDE SOUTH polymetallic project, Namibia. Follow-up infill sampling on the Zulu anomaly has discovered copper- and gold- rich bedrock mineralisation, associated with a folded sedimentary package. New soil geochemistry results from Grid 4, located 17 km north of Zulu suggest the presence of similar targets.

  7. The Company has signed agreements with Teck Cominco to acquire two licences in Namibia, totalling 143,000 hectares. The agreements increase the Company's landholdings around the Otjitombo copper project, and also around the Tevrede, Tevrede South and Honib licences.
More detailed information on all of the above can be found on the following pages, including additional corporate updates.

The Figures can be accessed in the "Latest Updates" section on the Home Page of the Company's website at www.helioresource.com

SAZA Gold Project - Tanzania


New data from the Saza gold project continues to demonstrate the potential for the discovery of a significant gold resource, as follows:
  1. Outcropping gold mineralisation, east of the New Saza Mine, extends for a distance of ~10km along the Saza shear zone. In addition, gold-in-soil, gold-in-RAB drilling and IP anomalies show the presence of a further 10+ km strike length of targets along structures cross-cutting the Saza shear zone.

  2. Recently acquired, property-wide gradient IP and magnetic surveys show the presence of a number of chargeability / resistivity anomalies directly associated with known gold-bearing structures. None of these IP anomalies have ever been drill tested. Figure 1 shows the known gold occurrences, the main structures and the IP anomalies.

  3. Geological mapping and sampling in the Cheche, Kenge, Snakebite, Kipanga, Konokono, Mfuasi and Dik Dik targets has been successful in confirming the presence of multiple mineralised structures. Helio has collected 145 representative rock grab and channel samples from the licence, 62 of which returned gold assays greater than 0.5g/t Au, with 20 samples returning assays in excess of 5g/t Au. Samples from the Konokono area contain elevated copper levels (up to 1.3% Cu with 0.98g/t Au in Sample RSZ 99). Figure 2 shows the locations of the samples collected. Table 1 presents the results above 0.5g/t Au. Samples were analysed by ALS Chemex in Johannesburg, RSA. It should be noted that outcrop is limited, and the channel samples were confined to prospect pits and old workings. Many of the mineralised intersections reported in Table 1 remain open across strike.

  4. The highlight from the channel sampling exercise was at the Kenge target, where a 16.4m wide channel sample across old workings assayed 1.8g/t Au. The hangingwall above the old working returned 5.69g/t Au over 6.8m and remains open in both directions.

  5. Review of the historical RAB drilling data undertaken by Anglo American at the Cheche target shows the presence of a series of sub-parallel mineralised sheets contained within a structural corridor (the Saza Shear Zone) over 200m wide (Figure 3) and over a strike length of 600+m. All of the mineralised intersections shown in Figure 3 occur within 20m of surface and are bedrock-hosted. Most notable from this section is that the southernmost hole (far left on Figure 3) bottomed in mineralisation grading 11g/t Au over 3m, and the closest drill hole to this is over 70m away. The closest inclined RAB holes to Cheche are located over 1km away on strike, in the Snakebite area. Sampling by Helio confirms the presence of bedrock gold mineralisation between the RAB fences at Snakebite and Cheche.

  6. The company has signed a contract with a drilling company and expects to commence a 3,000m RC programme designed to drill-test certain targets in June.
$2,000,000 Financing completed in February

The company completed a $2,000,000 private placement unit financing in February (shares priced at $0.50 with a full 2-year share purchase warrant priced at $0.75). Subsequently, the company's share price traded at a level above $0.65, triggering the exercise of ~1.8 million $0.50 share purchase warrants related to a financing completed in December 2004.

As a result of the above market transaction, Helio now has ~$3,300,000 in cash. Issued and outstanding shares total 27,602,800.

MAKURU and VREDELUS Gold Projects - Namibia

Our partner on Makuru, Yale Resources Ltd (TSX-V: YLL), has approved a 1,500m+ RC drill programme to test a number of geochemical and geophysical targets on Makuru, and drilling is scheduled to commence this week. Yale can earn a 75% interest in the Makuru licence, located immediately west of Helio's Vredelus project, which is optioned to Teck Cominco.

Teck Cominco has recently completed a 20 hole, 3,043m RC drilling programme on Vredelus, the results for which are expected within the next month.

LEICESTER Copper-Gold Project - Namibia

As with the Makuru gold project, Yale Resources has elected to continue into year 2 of the respective option agreement. In combination with Makuru, Yale has budgeted $500,000 for work at Leicester and Makuru. A second phase of drill testing is expected to commence later this year.

TEVREDE SOUTH - Copper - Gold Project - Namibia

Recent detailed mapping and trench sampling on the Zulu anomaly has confirmed the presence of high-grade gold mineralisation to the west of bedrock mineralisation previously discovered by Helio (Company Press Release dated November 9, 2005). A trench line 50m west of Sample TS3 was sampled, and two zones of mineralisation were intersected. The highest grade sample was 5m grading 17.85 g/t Au. A map of the sampling is presented as Figure 4.

In addition, Helio has defined a second large multi-element soil anomaly on Tevrede South, at Grid 4, some 17km NE of the Zulu target. This copper ± lead ± zinc ± gold anomaly is over 2km long and up to 800m wide, with the highest response being 266ppm Cu. The new anomaly, named "Crescent", appears to occur in a similar geological environment to the Zulu anomaly. A total of 1,167 samples (including duplicates) were taken on a 500 x 50m grid, with subsequent infill sampling on 200 x 20m spacing. The grid covers an area of 12km². Figure 5 shows the respective locations of the Zulu and Crescent anomalies, which are peripheral to a 10km wide HHP (high heat production) granite.

The Crescent anomaly is hosted within a package of folded metasedimentary rocks with a coincident magnetic anomaly. In common with Zulu, the peak geochemical responses are located in the fold hinges, a favourable structural setting for the development of ore deposits. A programme of detailed mapping and rock sampling will be completed in the coming weeks.

After reinterpretation of information gained from the Company's recent activities on Tevrede South and Honib, a new soil-sampling grid (Grid 6) was completed over favourable stratigraphy. Results are expected in the coming month.

HONIB - Silver-Copper-Gold Project - Namibia

Following the discovery of the high-grade silver mineralisation at the Grensvoet anomaly, (Company Press Release dated March 3, 2006) the Company has commenced a 1,000m diamond drilling programme (two or three holes) to better understand the geological setting.

Additionally, two new soil-sampling grids have been completed over areas that exhibit similar geology to the Grensvoet anomaly. Results are expected in the coming month.

TEVREDE IOCG / GOLD Project - Namibia

Following the failure of Boulder Mining Corp. to meet the earn-in requirements, the Option Agreement with Boulder lapsed and the Tevrede project has reverted 100% to Helio. A thorough review and compilation of results is underway. The company intends to seek a partner to advance the Tevrede project, which has a number of drill-ready high-grade gold occurrences.

OTJITOMBO Copper-Gold-Cobalt Project - Namibia

A review of drill data completed to date has been undertaken. The company is considering either to conduct a second phase drill programme of approximately 10,000 metres, or to seek a partner to advance Otjitombo.

ZEBRA Cu-Ni-PGM targets - Namibia

The Zebra licence has been relinquished, due to disappointing results.

ERL 82 - Namibia

Following assessment of available geological and geophysical data, as well as review of historical reports available at the Geological Survey, Helio has applied for two new EPL licences totaling approximately 160,000 Ha.

TWO NEW PROJECTS OPTIONED FROM TECK COMINCO

The Company has signed option agreements with Teck Cominco on two licences in Namibia, in which Helio can earn up to a 90% interest. The transfer of these two licences is subject to approval of the Ministry of Mines.

The Otjitombo South Licence is contiguous with and south of the Company's 100% owned Otjitombo Licence and increases the company's land position in the area to 110,000 hectares.

The Tevrede North Licence adds a further 49,000 hectares to the company's land position immediately north of the Tevrede, Tevrede South, and Honib licences (all 100% Helio). Tevrede North provides the company with extensive coverage of a highly prospective belt of volcanic rocks that host the newly discovered silver-copper rich polymetallic occurrences located on the Honib and Tevrede South licences.

LOKGWABE Diamond Project - Botswana

A limited first pass drill programme was undertaken by our partner, Indicator Minerals, on the Lokgwabe licence, and six magnetic targets were tested. No kimberlite was intersected and further work programmes are currently being reviewed by Indicator.


Helio Resource Corp., based in Windhoek, Namibia, is one of Southern Africa's leading exploration companies and specializes in innovative new-project generation. Helio is actively exploring 11 prospective gold, copper and diamond properties in Namibia, Botswana and Tanzania. As part of its strategic approach to project development, Helio has forged partnerships with firms such as Teck Cominco, Indicator Minerals and Yale Resources to advance a number of its projects.

Chris MacKenzie, M.Sc., C.Geol., Helio's Executive Chairman and a Qualified Person as designated by NI 43-101, supervises the sampling and quality control programs in Namibia and Tanzania.

For additional information, please contact Richard Williams or Irene Dorsman at (604) 668 8363 / 8356 or by e-mail at richard@helioresource.com or irene@helioresource.com or visit the Company's website at www.helioresource.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams"
Richard D. Williams, P.Geo
President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

TABLE 1a - Assays from Channel Samples
Channel # Width (m) Au g/t Target Name
       
1 1.68 0.56 Konokono
2 0.70 3.70 Konokono
3 2.23 3.31 Konokono
4 1.85 5.42 Konokono
5 2.14 2.55 Konokono
       
6 3.00 1.10 Kenge
7 16.40 1.80 Kenge
8 6.80 5.69 Kenge
9 2.00 2.32 Kenge

TABLE 1b - Assays from Grab Samples

Sample # Au g/t Target Comment
 

 

 

 

RSZ036 0.52 Dik Dik Veined wallrock from dump
RSZ168 9.13 Dik Dik Polymetallic quartz - calcite vein
RSZ169 4.30 Dik Dik Milky quartz veining
 

 

 

 

RSZ126 6.78 Kenge Pyritic granitic rock
 

 

 

 

RSZ171 0.62 Kipanga Grab from prospect pit
RSZ172 7.16 Kipanga Composite grab of veins from dumps
RSZ173 20.30 Kipanga composite grab of quartz from stream bed
 

 

 

 

RSZ029 1.60 Konokono Quartz vein from waste dump
RSZ032 22.10 Konokono Vein quartz on surface
RSZ081 9.79 Konokono Quartz vein from dump
RSZ088 1.14 Konokono Hematitic quartz float
RSZ092 8.22 Konokono Veins from artisanal dump
RSZ093 0.55 Konokono Silicified polymetallic rock
RSZ098 1.13 Konokono Silicified polymetallic rock
RSZ099 0.93 Konokono Silicified polymetallic rock
RSZ101 4.82 Konokono Sheeted veining in altered granite
RSZ102 9.20 Konokono Vein material from artisanal dumps
RSZ103 0.70 Konokono Vein material from artisanal dumps
RSZ104 4.88 Konokono Pyritic quartz vein
RSZ106 1.33 Konokono Quartz vein float from large artisanal pit
RSZ131 3.44 Konokono Sheared altered, veined, granite
RSZ143 1.43 Konokono Vein composite taken from trench
RSZ145 4.95 Konokono Vein composite taken from trench
RSZ147 13.90 Konokono Vein composite taken from trench
RSZ148 0.84 Konokono Wall rock composite from trench
RSZ149 12.90 Konokono Wall rock from silicified granite in trench
RSZ150 14.80 Konokono Vein composite taken from trench
RSZ151 10.95 Konokono Pyritic quartz vein
RSZ155 24.20 Konokono Vein quartz in area of old workings
 

 

 

 

RSZ127 172.00 Mfuasi High-grade vein from artisanal workings
 

 

 

 

RSZ137 3.50 Snakebite Sulphidised andesitic volcanic
RSZ139 4.68 Snakebite Vein quartz from dumps
RSZ140 6.45 Snakebite Vein quartz from colluvial workings (area covered)
 
 

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