Helio Resource Corp.

Helio Resource Corp.

January 23, 2006 14:00 ET

Helio Resource Corp.: News Release & Shareholder Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2006) - The Management and Board of Directors of Helio Resource Corp. (TSX VENTURE:HRC) wishes to provide an update on its exploration activities in Namibia, Botswana and Tanzania, together with the Company's outlook for 2006.

Highlights of 2005

1. In December 2005, the Company acquired an option to earn a 100% interest in the Saza gold project, Tanzania (including two former gold mines).

2. Our partners are earning in on five of the Company's eleven projects, with a combined commitment to exploration expenditures of $1,800,000.

3. Completion of a 4,700m combined RC and diamond drill programme at the wholly-owned Otjitombo Cu-Au-Co property.

4. Phase 1, 1,800m RC drill programme completed at the Leicester Cu-Au project.

5. 3,500m combined RC / DDH programme completed on Grid A targets, Tevrede IOCG project.

6. Significant multi-element soil anomalies discovered on the Company's Honib, Tevrede South and Zebra licences.

Outlook for 2006

1. Drill programmes anticipated at:

- Saza (gold project in Tanzania);

- Vredelus (gold project in Namibia optioned by Teck Cominco);

- Otjimakuru (gold project in Namibia optioned by Yale Resources);

- Lokgwabe (diamond project in Botswana optioned by Indicator Minerals);

- Tevrede (IOCG project in Namibia optioned by Boulder Mining / Springbok Resources);

- Otjitombo (Cu-Co-Au project in Namibia - 100% Helio)

2. Advance targets on wholly owned projects to the drill-testing stage.

3. Continue to identify and acquire new projects and to attract partners.


2005 proved to be a very productive and positive year for the Company. We now have eleven active projects in three countries in southern Africa. Five of the properties are subject to earn-in agreements, and we expect to conduct drill programmes on at least six projects this year.

With strong metals prices, numerous active projects, and multiple drill programmes, 2006 promises to be a very exciting year for Helio as well. The Company will continue to actively generate new opportunities to further build on the growth experienced through 2005.

Mineral exploration is a high-risk business, since mineral discoveries which can be made into mineable deposits are the exception, not the rule. Helio's business strategy of forming partnerships with a number of companies allows us to test many targets simultaneously, and significantly increases the chance of discovery.

SAZA Gold Project - Tanzania

The Company is very excited by this opportunity. The combination of historic gold production from the licence, coupled with recent impressive drill intercepts, indicates very strong potential to develop an economic resource.

Since signing a letter of intent in December 2005 (see news release dated December 19, 2005), the company has compiled all available data on the Saza licence. Of significant interest are the near surface drill intercepts from a shallow RAB drilling programme (average hole depth of 7.5m) conducted by AngloGold Ashanti in the late 1990's. Examples include SAZB564 (12m @ 6.83g/t Au), SAZB574 (20m @ 3.37g/t Au), SAZB582 (12m @ 6.88g/t Au) and SAZB622 (9m @ 6.74g/t Au). All of these intersections are within 20m of surface, the holes ended in mineralization and were open along strike and to depth.

The next phase of exploration work will be initiated in January 2006 and will include property-wide IP geophysics, mapping and sampling in preparation for a drill programme, scheduled to commence in the second quarter of 2006.

VREDELUS Gold Project - Namibia

Teck Cominco, our partners on the Vredelus gold project, completed a detailed review of the available data in late 2005. A drill programme has been designed to test multiple targets immediately south of a gold system drilled by RTZ in the early 1990s, and is expected to commence during February.

The Vredelus project lies within the same belt as AngloGold Ashanti's Navachab Gold Mine (current resource of 137.7Mt grading 1.18g/t Au for 5.2 million ounces: AngloGold Ashanti 2004 Annual Report). The northern extension of the main target was previously explored by Rossing Uranium Limited, a subsidiary of RTZ, which discovered multiple zones of gold mineralization through RC and diamond drilling. Drill intercepts included:

- 5.4g/t Au over 12.35m in ERD 2;

- 12.85g/t Au over 5m in ERD 3;

- 6.2g/t over 4m in ERRC 16

- 9.53g/t Au over 9m in ERRC18.

Teck Cominco has committed to spend a minimum C$250,000 before June 2006. The terms of the agreement can be viewed on the Company's news release dated June 2, 2005 on our website at www.helioresource.com.

OTJIMAKURU Gold Project - Namibia

Optioned to Yale Resources (TSX VENTURE:YLL), which can earn a 75% interest in this licence, and located immediately west of the Vredelus project. Gradient array IP geophysics and soil sampling indicate the presence of a widespread mineralised system. Soil samples returned results up to 580ppb Au, in an environment where, due to the weathering history, gold values above 20ppb are significant.

A RAB (rotary air blast) drilling programme is planned to commence in February to test the targets, many of which lie beneath a sand / calcrete cover sequence, which is up to 6m thick.

LEICESTER Copper-Gold Project - Namibia

Yale Resources funded a Phase 1, 1,800m drill programme at Leicester in November / December 2005, testing a series of targets over a 10km strike length along the Rehderstal Fault. Results from the programme were released on January 12, 2006 (www.yaleresources.com/docs/news/06-01.pdf). Additional work on untested targets is anticipated to commence upon completion of the RAB drilling programme at Otjimakuru.

TEVREDE IOCG Project - Namibia

The Tevrede licence is subject to an option agreement with Boulder Mining Corporation (TSX VENTURE:BDR) and Springbok Resources Ltd. (a private company). Almost 3,500m of combined RC / diamond drilling designed to testing targets in the Grid A area (northeast corner of the property) was completed in December 2005.

A second phase of drilling is due to commence on the Grid D / Azurite Hill gold targets, located in the south west part of the property during January. The Grid D / Azurite Hill gold trend was discovered in 2003 (rock samples returned 88.5g/t, 51g/t, 30.8g/t and 10g/t gold). Follow-up drill testing in 2003 intersected 2m grading 9.79g/t gold, and the zone remains open both at depth and along strike in both directions. IP geophysics and rock sampling over the main Azurite Hill trend has identified several parallel auriferous structures, which will be tested in the upcoming programme.

OTJITOMBO Copper-Gold-Cobalt Project - Namibia

In 2005 the Company completed 3,381m of diamond drilling (20 holes),and 1,469m of RC drilling (16 holes), in addition to approximately 100 line-km of gradient array IP geophysics and 16 line-km of pole dipole IP geophysics. The drilling results and IP geophysics show the presence of a very extensive mineralized system (see news release dated September 12, 2006).

Drill hole OTR14, the results for which were received after the September 12, 2005 shareholder update, intersected 44m grading 0.28% Zn. This zone is open in all directions and is located on the western edge of a 2km x 1km IP anomaly in the northwest part of the property (see Otjitombo Drill Plan map in the September 12, 2005 news release).

The majority of the area covered by the extensive IP chargeability anomalies has not been tested by drilling (see maps from news release dated September 12, 2005), which primarily focused on outcropping mineralization, extensions of outcropping mineralization projected under sand cover, and IP anomalies generated in a much smaller 2004 IP survey.

Additional drilling is being planned. The nature of the multiple mineralized horizons found throughout the stratigraphy is indicative of copperbelt-type mineralization.

TEVREDE SOUTH and HONIB Polymetallic and IOCG Targets - Namibia

The Company has now received results from all eight soil sampling grids on the licences (5 grids on Tevrede South and 3 grids at Honib). Significant polymetallic anomalies have been identified on all eight of the grids (see news releases dated October 20 and December 6, 2005).

At Tevrede South, follow-up work at Grid 1 discovered outcropping, high grade copper+/-gold+/-silver+/-zinc mineralization in two locations 600m apart (news release dated November 9, 2005). The copper-in-soil anomaly related to the mineralization covers a folded sedimentary package that has a strike length of approximately 6km by up to 600m wide. Follow-up petrological and geophysical surveys have shown that mineralization is hosted within a highly-chargeable, conductive horizon which is continuous from surface to depths of over 200m.

At Grid 1 on the Honib license follow-up prospecting discovered the presence of cobble sized chalcocite boulders and disseminated lead mineralization related to a volcano-sedimentary package.

The Company plans to conduct detailed geological mapping and detailed geochemical sampling including extensive rock chip sampling to advance the targets to the drill ready stage.

ZEBRA Cu-Ni-PGM targets - Namibia

During 2005, the company covered a prospective layered mafic intrusion (4km x 2.5km) with a soil sampling grid. Results show the presence of a 1.3km long coincident Cu-Ni-Co anomaly which is open in both directions.

Petrographic studies have confirmed the presence of disseminated chalcopyrite, pyrrhotite, and pyrite within the target intrusive.

ERL 82 - Namibia

In November 2005 the Company was granted a new licence (ERL 82), covering 1,300,000 hectares in northern Namibia (news release dated November 28, 2005). The area is considered prospective for IOCG-style copper-gold mineralization, intrusion-related Cu-Ni-PGE mineralization and diamondiferous kimberlites.

Approximately 60% of the licence has been covered with high resolution magnetics, from which numerous pipe-like magnetic anomalies have been identified. An airborne magnetic survey is being planned to cover the 40% of the property that does not have detailed magnetic coverage; the timing of the survey is dependent on plane availability.

LOKGWABE Diamond Project - Botswana

Indicator Minerals (TSX VENTURE:IME) has an option to earn an 80% interest on this 3000km2 licence. The second phase of exploration, a 22,500 line km high resolution airborne magnetic survey, has been completed and numerous magnetic anomalies have been identified for ground follow-up and drill testing (see Indicator news release dated January 11, 2006).

Indicator has committed to Phase 3 of the option agreement which requires expenditures of $500,000 over the next 12 months and the issuance of 100,000 common shares to the Company.

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, Yale Resources, Boulder Mining and Springbok Resources to advance a number of its projects.


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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