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 Thu Feb 3, 2005
Helio Options Lokgwabe Diamond Project To Indicator Minerals, Website Goes Live

 Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to announce that it has signed a Letter of Intent ("LOI") with Indicator Minerals Inc. ("Indicator") (TSX-V: IME) granting Indicator the option and right to earn up to an 80% interest in the Lokgwabe Diamond Project, located in Botswana, southern Africa.

The Lokgwabe diamond project, located in west central Botswana covers 3,000 square kilometres. Previous heavy mineral sampling on the project has identified five main areas with anomalous concentrations of kimberlite indicator minerals, including pyrope garnets with G10 chemistry. The chemical compositions of the indicator minerals suggest that they were derived from diamond bearing kimberlite. The source kimberlites are believed to be located within the project area based on surface textures of the indicator minerals recovered and the local geology.

The LOI outlines a three-stage earn-in.
  • Stage one - Indicator can earn a 51% interest in Lokgwabe by making a one-time cash payment to Helio of $20,000, incurring $2,000,000 in exploration expenses and issuing 500,000 common shares to Helio over a 42 month period.
  • Stage two - Indicator can increase its interest a further 9% (60% total) by incurring an additional $2,000,000 in exploration expenses over twelve months and issuing 250,000 shares to Helio.
  • Stage 3 - Indicator can increase its interest in Lokgwabe to 80% by carrying Helio to the conclusion of a bankable feasibility study and issuing a final 250,000 common shares to Helio.

The LOI is subject to TSX Venture Exchange approval.

Web Site

In addition the Company is pleased to announce that its web-site has been completed and is now live. The web-site address is www.helioresource.com.

Helio Resource Corp. is a mineral exploration company based in Namibia, southern Africa, and the Company's principal focus is the exploration for copper - gold deposits. The Company has title to eight Exclusive Prospecting Licences covering 233,100 hectares in Namibia, and has an option to earn a 100% interest in the 300,000 hectare Lokgwabe diamond project in Botswana.

Helio is currently drill-testing the Otjitombo copper - gold - cobalt project in Northern Namibia (see news release dated January 11, 2005). In addition, the Company is conducting a soil sampling and IP geophysics programme over the 32km2 Iron Oxide Copper Gold target at its Leicester property in north central Namibia, and is also completing a reconnaissance stream sediment sampling programme over the IOCG targets on the 80,000 hectare Tevrede South and Honib properties. Please visit the Company's web-site at www.helioresource.com for more details.

For additional information, please contact Richard Williams at (604) 668 8356 or by e-mail at richard@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.
 
 

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