Overview

Helio Resource Corp (CVE:HRC) is a well-financed Canadian based junior gold exploration company focused on growing the resource at its 238km² SMP Gold Project in Tanzania with at least 50% and outlining the resource potential the 100%-owned 3,185km² Damara Gold Project in Namibia.

Late 2010, Helio released its initial NI 43-101 compliant resource estimate for the SMP Gold Project at 940,000 ounces (588,000 Measured and Indicated at 1.54g/t and 352,000 Inferred at 1.10g/t Au). The resource comes from only 2 of at least 30 mineralised targets identified on the SMP Project, namely Porcupine and Kenge. Both targets have very strong potential for resource expansion, which has been the initial focus of the 20,000m 2011 drill program started  March 2011.

Helio’s portfolio also includes the Damara Gold Project (DGP) in Namibia. Damara is located between AngloGold Ashanti’s Navachab Mine to the southwest and Auryx Gold Corp.’s Otjikoto Project to the northeast. Navachab style of mineralization have been confirmed at the DGP. In February 2011, Helio announced the start of a 10,000m+ drill program and geochemical and geophysical surveys on Damara.

Investment Highlights

• Helio is currently running a 20,000m drill program on the SMP in Tanzania and a 10,000m program on the DGP in Namibia and consequently the market can expect a constant news flow following the release of the first drill results early June., Solid initial NI 43-101 compliant resource at the SMP (covering only 2 out of 30 known gold-bearing targets) and expected to be increased by at least 50% in 2011.
• 100% interest in the DGP project immediately adjacent to AGA’s Navachab mine with confirmed Navachab style mineralization and expected to outline the resource potential by the end of 2011.
• Well financed: closed financing of $10 million inFebruary 2011.
• Involvement of the IFC (investment arm of the World Bank) through $6.2 financing closed in Feb. 2010
• Active in Tanzania + Namibia – countries with strong track record for investment and mine development

Chief Properties

Key Property – SMP Gold Project in Tanzania

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The SMP Gold Project in Tanzania covers 23,800 hectares (238km2) in the Lupa goldfields, south west Tanzania. Gold mineralization has been identified in 30 targets within the project area.  Two of these targets, Porcupine and Kenge, have been advanced to the resource definition stage, and both still have potential to grow significantly.  Mineralization at all 30 targets outcrops at surface, and varies from narrow, high grade gold mineralization hosted in quartz veins and shear zones, to wide zones (up to 90m in width) of lower grade, bulk mineable / open pittable mineralization.

In November 2010, Helio released its initial NI 43-101 resource estimate for the SMP Gold Project at 940,000 ounces (588,000 Measured and Indicated at 1.54g/t and 352,000 Inferred at 1.10g/t Au) The resource comes from only 2 of at least 30 mineralised targets identified on the SMP Project, namely Porcupine and Kenge.  Both targets have very strong potential for resource expansion and therefore will be the initial focus of the 2011 drill program.

For instance, at Porcupine the Quill Zone (up to 14m at 4.5g/t Au) is inferred to link up to the NE Zone, representing a potential addition of an 800m strike length extension of mineralisation.  The Porcupine Main Zone (PMZ) is open along strike to the NE and SW, as well as to depth (the four deepest drill intercepts at the PMZ (GPD 48, 49, 51, and 52) intersected 92m at 0.9g/t Au, 28m at 5.1g/t Au, 53m at 2.9g/t Au and 70m at 0.8g/t Au, respectively).

Also in 2010, drilling at the western portion of the PMZ led to the discovery of the Footwall Zone beneath the PMZ (intercepts of 44m at 2.0g/t Au and 19m at 2.6g/t Au) (see Figure 3).  The Footwall Zone is open and requires further drilling to determine the size and geometry of this new target.

Helio’s objective in 2011 is to increase the SMP Gold Project resource by at least 50%. A diamond drill program has commenced early March. The initial focus of the program is to increase the existing resource at the Porcupine and Kenge targets. Additional drill testing of other targets (Konokono, Tumbili and Kasuku) will advance the pipeline of targets and add to the resource base.

The Damara Gold Project in Namibia

The 100%-owned Damara Gold Project (DGP) comprises four licences (covering 318,500ha or 3,185km²) and located between AngloGold Ashanti’s Navachab Mine to the southwest and Auryx Gold Corp.’s Otjikoto Project to the northeast.

The Navachab mine has been in production since 1989 and, as of December 2009, has produced approximately 1.5 Moz of gold and has a non-NI 43-101 compliant resource of 4.48 Moz grading 1.17g/t Au (source AngloGold Ashanti Quarterly Report, December, 2010).

Auryx’s Otjikoto Gold Project, located approximately 150km northeast of Helio’s licences has a NI 43-101 indicated resource (February 2011) of 15.78Mt grading 1.94g/t Au and an inferred resource of 8.37Mt grading 1.94g/t Au for total of 1.5 Moz at a 0.8g/t cut-off.

Helio has identified at least 16 targets displaying Navachab-style mineralisation and has begun a 10,000m+ diamond drill program  in February 2011 to collect oriented drill core from these targets. Previous drilling by AGA subsidiaries in the early 1990s intersected up to 17m grading 2.8g/t Au and 6m grading 3.6g/t Au (open), respectively.

For 2011 Helio’s objective is to outline the resource potential of the Damara Gold Project by year-end.

Management

Christopher J. Mackenzie, M.Sc., C. Geol. – Chief Operating Officer & Director - Chris MacKenzie is a Chartered Geologist who has worked widely in Africa, Europe, and the Americas. Chris holds a B.Sc. Honours Degree in Geology from Portsmouth University, UK and a M.Sc. Degree in Exploration Geology from Rhodes University, South Africa.  In 2000, after completing his M.Sc., he and Richard Williams formed the BAFEX group of companies, the precursor to Helio Resource Corp.

Richard D. Williams, M.Sc., P.Geo – Chief Executive Officer & Director - Richard Williams is a Professional Geologist with 21 years experience in gold mining and precious and base metal mineral exploration in southern Africa, south, central and north America, and most recently in southern Europe.  Richard graduated from Portsmouth University 1988. In 1993 he completed a Master’s degree in Mineral Exploration at Queen’s University, Ontario.  Richard is based in Vancouver and is responsible for Helio’s corporate affairs.

Andrew MacRitchie, C.A. – Chief Financial Officer - Andrew MacRitchie holds a B.Sc. Honours degree from the University of British Columbia. He received his Chartered Accountant designation in 2003 while articling with PricewaterhouseCoopers. During that time, Andrew provided services to public companies in the technology and commodities industries. Prior to joining Helio in 2007, Andrew spent four years as the Corporate Controller for a group of exploration-stage companies with gold, silver, diamond and base-metals. Andrew volunteers as a member of the Board of Directors of the Kidney Foundation of Canada.

D. Grenville Thomas, P. Eng. – Chairman & Director – D. Grenville Thomas is best known as the founder (and held positions as Chairman, President and Director) of Toronto-based Aber Resources Ltd. (now Harry Winston Diamond Corporation).  Harry Winston holds interests in various properties throughout the Northwest Territories, including the Diavik Diamond Mine, Canada’s second diamond mine.  Mr. Thomas brings significant exploration experience and demonstrated exploration success to the Board.

Clifford T. Davis, CA – Director - Cliff Davis, Chartered Accountant, is the CEO of Nevsun Resources Ltd, which is building the Bisha gold-copper-zinc mine in Eritrea.  Mr. Davis brings to the Board his international business experience in operations and finance as well as his experience in accounting and corporate governance.

Stephen M. Leahy – Director - Mr. Leahy is a businessman who has participated actively in the formation, growth and financings of numerous mining and oil & gas companies in Canada and internationally. Since 1981 Mr. Leahy has served as President, Chairman, CEO or Director of numerous private and publicly traded companies with listings on the TSX Venture Exchange and TSX including Startech Energy, Wellco Energy Services and First Silver Reserve. Mr. Leahy is currently Chairman & CEO of North American Tungsten Corporation Ltd, which owns 100% of the CanTung Mine and MacTung deposit in the Yukon/NWT.

Colin Jones, B.Sc., MAusIMM – Director - Colin Jones is a graduate of Massey University, New Zealand and is also a Member of the Australasian Institute of Mining and Metallurgy.  He has experience globally, having worked on producing mines, and managed large exploration and due diligence projects, and has undertaken numerous bankable technical audits, technical valuations, independent expert reports and due diligence studies worldwide. He now holds the position of Executive Vice President with Dundee Resources Limited, Toronto. Mr. Jones brings significant technical and due diligence experience to the Board.